In a joint production process, the allocation of joint (common) costs to each of the joint products being produced is needed principally:

Multiple Choice

• To meet external reporting requirements (i.e., for financial statement preparation purposes).

• To determine whether the firm in question should produce at all.

• To assess supplier performance.

• To determine which products, if any, should be processed beyond the split-off point.

• For determining the incremental revenues associated with additional processing of each product.