Why would the perceived fairness of a joint cost allocation method be important to some managers?

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Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

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Question Posted: Jan 26, 2015 02:09 AM

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The allocation of a joint cost among joint products is essentially an arbitrary process. If this statement is true, then why allocate?
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Why would the perceived fairness of a joint cost allocation method be important to some managers?

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Cost Management Measuring Monitoring and Motivating Performance

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