The physical-quantities method of assigning costs may provide a reasonable basis for joint cost allocation as long as the physical measures reflect economic value.

Question

Quizplus · Accepted Answer

The physical-quantities method can be reasonable for joint cost allocation if the physical measures (like weight, volume, etc.) are proportional to the economic values of the products, ensuring a fair distribution of costs.

The Physical-Quantities Method of Assigning Costs May Provide a Reasonable