Which joint cost allocation method is described by the following statement? Joint cost is prorated to the products on the basis of each product's share of units.
A)physical units method
B)weighted average method
C)sales-value-at-split-off method
D)net realizable value method

Question

Quizplus · Accepted Answer

The physical units method allocates joint costs to individual products on the basis of each product's share of units. Therefore, choice A is the correct answer. The weighted average method and sales-value-at-split-off method consider factors other than unit share to allocate joint costs, while the net realizable value method is not a joint cost allocation method.

Which Joint Cost Allocation Method Is Described by the Following