The physical quantities method of allocating joint costs is often used when the output sales prices are highly volatile.

Name: The physical quantities method of allocating joint costs is often used when the output sales prices are highly volatile.
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Question

Quizplus · Accepted Answer

The physical quantities method is used when sales prices are volatile because it allocates costs based on measurable physical units, providing a stable basis for cost allocation regardless of price fluctuations.

The Physical Quantities Method of Allocating Joint Costs Is Often