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Why are many companies divided into departments

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Question: 1. A company produces three products, B1, B2, and B3. The joint cost incurred for the current month for these products is $180,000. The following data relate to this month's production:

Product Units                              Produced Unit                       Sales Value

B1                                                  96,000                               $3.00

B2                                                  64,000                                6.00

B3                                                  32,000                                9.00

The amount of joint cost allocated to product B3 using the value basis allocation is (a) $30,000, (b) $54,000, or (c) $90,000.

2. Why are many companies divided into departments?

Reference no: EM131538758

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