Question: Requirement 2 . What joint - cost - allocation method would you recommend Farm GrownFarm Grown Chicken use? Explain. The sales - value at splitoff
Requirement What jointcostallocation method would you recommend
Farm GrownFarmGrown
Chicken use? Explain.
The
salesvalue at splitoff
method captures the benefitsreceived criterion of cost allocation and is the preferred method.
The costs of processing a chicken are allocated to products in proportion to
Farm GrownFarmGrown
Chickens decision to process chicken is heavily influenced by the
pounds of breasts and bones
revenues from bones and feathers
revenues from breasts and thighs
The
bones
breasts
feathers
wings
provide relatively few benefits to
Farm GrownFarmGrown
Chicken despite their high physical volume.
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