JOINT PRODUCT DECISIONS, THE FIXED PROPORTIONS CASE: A NOTE |
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Authors: | Lloyd R. Amey |
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Affiliation: | The author is Professor of Accounting at McGill University, Montreal, Canada. |
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Abstract: | ![]() The purpose of this note is to draw attention to a misleading conclusion in the literature, that in determining the optimal rate of joint production and the optimal quantities of joint products to be finished and sold, the joint costs are implicitly shared in proportion to the respective marginal revenues. This conclusion applies only to a special case which is not typical of most joint production processes. |
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