Sal's Frankfurters produces a variety of hot dogs and sausages. The accountant has used the physical output method to allocate joint costs of the manufacturing process, but is reconsidering the appropriateness of this method because new gourmet sausages are priced much higher per kilogram than the old products. Explain why one of the market-based methods might be a better choice.

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The Answer of Sal's Frankfurters produces a variety of hot dogs and sausages. The accountant has used the physical output method to allocate joint costs of the manufacturing process, but is reconsidering the appropriateness of this method because new gourmet sausages are priced much higher per kilogram than the old products. Explain why one of the market-based methods might be a better choice.

Sal's Frankfurters Produces a Variety of Hot Dogs and Sausages