Which one of the following methods of allocating joint costs uses a measure of weight,size or number of units to allocate joint costs to joint products?
A)Net realizable value method.
B)Physical measure method.
C)Product measure method.
D)Cost measure method.
E)Sales value at split-off method.

Question

Quizplus · Accepted Answer

The physical measure method uses a measure of weight, size, or number of units to allocate joint costs to joint products. The net realizable value method uses the final selling prices of the products to allocate joint costs, the product measure method allocates joint costs based on the relative market value of each product, the cost measure method allocates joint costs based on the production costs of each product, and the sales value at split-off method allocates joint costs based on the sales value of each product at the point where they become separate products.

Which One of the Following Methods of Allocating Joint Costs