Answer:

1. Positive: Costs are allocated to products in proportion to their potential revenues. This is a fairly simple method to implement.

Negative: We use the sales value of the entire production of the accounting period.

1. Positive: Can be used when the market prices of the products are not known or available.

Negative: Can be very complex in operations with multiple products and multiple splitoff points.

1. Positive: Account is taken of the profits earned either before or after the splitoff point when allocating the joint costs.

Negative: The assumption that all have the same ratio of cost to sales value. This is likely not true.

1. Positive: Fairly simple

Negative: Has no relationship to the revenue-producing power of individual products.