Two conventional ways of allocating joint costs to jointly-produced products are physical units and relative sales value.

Question

Quizplus · Accepted Answer

These are two widely-used methods for allocating joint costs. The physical units method allocates costs based on the quantity of each product produced, while the relative sales value method allocates costs based on the percentage of total sales value that each product represents.

Two Conventional Ways of Allocating Joint Costs to Jointly-Produced Products