Why is it important to allocate joint costs proporly?

1. To assign costs to the inventory 2. During cost reimbursement contracts, one might be able to get costs reimbursed during a project. However, one must be able to document their costs to get it reimbursed. 3. Insurance settlements. If the warehouse burns, one must be able to document the value of the product to get insurance pay. 4. To document the value of the goods in a lawsuit.