Joint costs in different industries may be allocated using any of the following methods, except:
A)relative cubic footage of gases from a gas exploration process
B)relative sales values of fresh tomatoes, pulp tomatoes and tomato juice at the split-off point
C)relative profitability of pine planks, plywood, chips and sawdust at the split-off point
D)relative net realizable values at the split-off point of gold, silver, copper found in 100 tons of mining ore
E)none of the above

Question

Quizplus · Accepted Answer

Joint costs are typically allocated based on physical measures (like cubic footage or weight) or the relative sales value at the split-off point. Allocating based on relative profitability is not a standard method because profitability can be influenced by factors unrelated to the production process, such as marketing and administrative expenses.

Joint Costs in Different Industries May Be Allocated Using Any