In joint costing,the potential conflict between cost concepts used for decision making and cost concepts used for evaluating the performance of managers will be most severe when the ________ method is used.
A) sales value at splitoff
B) physical measure
C) constant gross-margin percentage NRV
D) estimated NRV

Question

Quizplus · Accepted Answer

The physical measure method can lead to conflicts because it allocates joint costs based on physical quantities, which may not reflect the economic value or profitability of the products, potentially leading to misleading performance evaluations.

In Joint Costing,the Potential Conflict Between Cost Concepts Used for Decision