In these types of situations it can be difficult to determine the production costs for each product that is produced. This is when an organization is likely to use joint cost allocation. The objective of joint cost allocation is to ensure that production costs for each individual joint product are measured.6. Discuss the reasons for allocating costs to departments. An organization may choose to allocate costs to departments for a variety of reasons, including: • Motivation: When each unit of a company must be responsible for managing its own costs, the unit's managers will be motivated to outperform other units in an attempt to obtain extrinsic rewards. • Resource Evaluation: When costs are accurately allocated to departments, it is much easier for an organization to identify which departments are the most or least profitable. Management can use this information to decide which departments may need to be sold or closed, as well as to determine which departments may need to be expanded.7. Name some of the costs and benefits of cost allocation. Cost allocation costs include: • The need to hire additional staff to assist with allocation