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Part 1 and Part 2 must be at least 200 words unless otherwise noted.
Please read all attachments and follow ALL instructions.
Part 1: Allocating Joint Costs
Describe the three methods used to allocate joint costs. What are the advantages/disadvantages of each allocation method? Which method would you recommend? Why? Support your position with evidence from the text or external sources.
Part 2: Variable/Absorption Costing
As you read in Chapter 8, there are arguments (for and against) variable costing and absorption costing. Select one of these costing methods and explore the various arguments. Determine whether you are “for” or “against” this selected method. Provide evidence from the text to support your position.
Schneider, A. (2017). Managerial Accounting: Decision making for the service and manufacturing sectors (2nd ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
· Chapter 5: Joint Cost Allocation and Variable Costing
· Chapter 8: Cost Control Through Standard Costs
Recommended Resource
Crosson, S. (2007). PVA ABC JIT – 4 ABC example [Video File]. Retrieved from http://www.youtube.com/watch?v=eyH4l3VvOCU.
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