What question did this study set out to answer?

This note critiques Shane Moriarity's allocation method for joint costs, identifying a conceptual error.

Another Approach to Allocating Joint Costs: A Comment.

View Full Paper

Ask AI

Bookmark

Authors

This note critiques an allocation method for joint costs and suggests an improved approach, addressing internal costs.

This note critiques Shane Moriarity's allocation method for joint costs, identifying a conceptual error.
Analyzed Moriarity's proposed allocation method for joint costs.
Identified the failure to differentiate between internal incremental costs and internal joint costs.
Proposed a new allocation method that considers both incremental and joint costs.
Moriarity's method may lead to dysfunctional results in certain scenarios.
The new proposed method allows for a clearer distinction between cost types.
The mathematical framework is derived from Arthur L. Thomas's work, while differing in application.

Joseph G. Louderback (1976) studied this question.

View Full Paper

Ask AI

Bookmark