The major arguments in favor of direct costing are (1) it imposes a more realistic approach to the analysis of joint costs, (2) it permits the allocation of costs on a temporal basis if temporal significance outweighs product significance, (3) it enables the allocation of costs according to lines of responsibility for them, and (4) it possesses a number of advantages which stem from its simplification of computation. Finally, direct costing shifts the reflection of costs in the formal records from the expression of a relatively useless inventory valuation to the analysis of costs according to their applicability to periods or lines of activity.