Questions:
1. How does management determine how to classify each type of output from a joint process? Is this decided before or after production?
2. In a company that engages in a joint production process, will all processing stop at the split-off point? Discuss the rationale for your answer.
3. By what criteria would management determine whether to proceed with processing at each decision point in a joint production process?
4. Why is cost allocation necessary in accounting? Why is it necessary in a joint process?