The fact that managers sometimes use joint cost accounting information inappropriately in making decisions.

REQUIRED:

In a memo to your professor:

Explain what is meant by the above statement.

A. Give an example of how joint cost information could inappropriately affect decision making. Support your answers with references to actual products or businesses.

B. Give an example of how joint cost information could improve decision making. Support your answers with references to actual products or businesses.

C. Develop a strategy, and describe how it could be implemented, to prevent the misuse of cost accounting information, and explain how cost accounting information should be used to support strategic objectives.