What is cost allocation
Question:
1. What is cost allocation and why is it necessary in a joint process? Can you think of any other situations in which accountants allocate costs?
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How do the efficient markets hypothesis, the capital asset pricing model, and the security market line maximize shareholder wealth?
Allocate the joint cost using weight as the basis. Allocate the joint cost using sales value as the basis.
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What is cost allocation and why is it necessary in a joint process? Can you think of any other situations in which accountants allocate costs?
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