An example of allocating joint costs using physical measures is allocating joint costs based on ________.
A) sales value at splitoff point
B) volume of the products
C) constant gross-margin percentage
D) net realizable value

Question

Quizplus · Accepted Answer

Allocating joint costs based on volume of the products is a physical measure. It is based on the physical quantity or volume of each product produced and easier to measure accurately. The other options are based on monetary values (sales value, gross-margin percentage, net realizable value) and not physical measures.

An Example of Allocating Joint Costs Using Physical Measures Is