Discussion Topic: Joint Cost Allocation and Concepts in Action, â€œU. S.-South Africa Trade Dispute Over Joint Cost Allocationâ€ in Chapter 16.
Regarding joint cost allocation, discuss the following:
- Identify the two primary methods used to allocate joint costs.
- Compare the advantages and disadvantages of the two primary methods used to allocate joint costs to joint products.
- Explain how the choice of allocation method may affect the financial statements.
- Why did the U.S. dispute how joint costs of chicken processing were being allocated?