REASONS FOR ALLOCATING JOINT COSTS TO INDIVIDUAL PRODUCTS AND SERVICES

Abstract

This article discusses the economic essence, importance and necessity of the allocation of joint costs to individual products and services. It also analyzes the main methods of allocation of joint costs, their application in practice and their role in the activities of the enterprise. The article reveals the importance of the correct allocation of costs in determining the cost of products, setting prices, calculating profits and making effective management decisions. In addition, it also considers the economic problems that may arise as a result of incorrect allocation of joint costs.