Tag Archives | Joint Costs

Objectives for Allocation of Joint Costs | Cost Accounting

In this article we will discuss about the objectives for allocation of joint costs. Joint costs create the following problems in Accounting: (1) If joint costs are shared between more than one product. On what basis should they be shared out (apportioned)? And why do they have to be shared out? (2) How should joint […]

Apportionment of Joint Costs (With Illustrations) | Cost Accounting

The following points highlight the top six methods used for apportionment of joint costs. The methods are: 1. Average Unit Cost Method 2. Physical Unit Method 3. Survey Method 4. Contribution Method 5. Standard Cost Method 6. Market Value Method. 1. Average Unit Cost Method: Under this method the total joint costs up-to the point […]

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