The physical-measure method ________.
A) allocates joint costs to joint products in a way that each product has an identical gross-margin percentage
B) allocates joint costs to joint products on the basis of a comparable physical measure at the splitoff point
C) allocates joint costs to joint products on the basis of the relative sales value at the splitoff point
D) allocates joint costs to joint products on the basis of relative NRV

Question

Quizplus · Accepted Answer

The physical-measure method allocates joint costs to joint products on the basis of a comparable physical measure at the splitoff point. This method is commonly used in industries where joint products can be measured in similar physical units, such as pounds or gallons. It is a practical and objective method that can be easily applied in such industries.

The Physical-Measure Method ________