The physical output method of joint product cost allocation:
A) is useful for all product costing
B) is rarely used
C) is useful only when the output for all main products can be expressed by dollar values
D) none of the above

Question

Quizplus · Accepted Answer

The physical output method of joint product cost allocation is not limited to situations where output can be expressed in dollar values, nor is it rarely used or universally applicable for all product costing. This method allocates joint costs to joint products based on a physical measure such as weight, volume, or units, making option D correct as it states that none of the provided statements are accurate descriptions of this method.

The Physical Output Method of Joint Product Cost Allocation