Cost-plus pricing when joint costs are present
Companies using cost-plus pricing often produce products that entail joint cost allocation. A problem they have encountered is that, while product prices are a function of the full cost, joint cost allocation methods using net realizable values depend on the product prices. This paper shows that when all costs and production quantities are known (or can be budgeted), it is possible to simultaneously determine unique product prices and cost allocations using the net realizable value method.
Year of publication: |
1985
|
---|---|
Authors: | Schneider, Arnold |
Published in: |
Omega. - Elsevier, ISSN 0305-0483. - Vol. 13.1985, 6, p. 555-559
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Does level of CPA firm assurance affect investing decisions?
Schneider, Arnold, (2019)
-
Gramling, Audrey, (2018)
-
The effect of auditors' internal control opinions on loan decisions
Schneider, Arnold, (2008)
- More ...