Net realizable value and physical measures are two methods for allocating which of the following costs?
A)direct costs.
B)opportunity costs.
C)joint-process costs.
D)sunk costs.

Question

Quizplus · Accepted Answer

Net realizable value and physical measures are methods used to allocate joint-process costs, which are the costs incurred in producing two or more products from a single production process. Direct costs refer to specific costs that can be directly traced to a particular product or service, opportunity costs are the benefits forgone by choosing one option over another, and sunk costs are costs that have already been incurred and cannot be recovered.

Net Realizable Value and Physical Measures Are Two Methods for Allocating