Which cost allocation type should you use?

You are the lead product design manager at a Process manufacturing plant.

You are building a formula that produces egg yolks as a by-product. This by-product is added back into inventory at standard cost and can be used in other production batches.

You need to select the by-product cost allocation.

Which cost allocation type should you use?
A . Per series
B . Per quantity
C . Recycled
D . Percent

View Answer

Answer: A