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
Answer: B
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