Allocations of joint product costs can be based on the relative market values of the products:
A) And never on the relative physical quantities of the products.
B) Plus an adjustment for future excess margins.
C) And not on any other basis.
D) At the time the products are separated.
E) Only if the products contain both direct and indirect costs.

Question

Quizplus · Accepted Answer

Allocations of joint product costs can be based on the relative market values of the products at the time the products are separated, as this reflects their economic value at the split-off point.

Allocations of Joint Product Costs Can Be Based on the Relative