One conventional way of allocating joint costs to products is the
A) relative sales value method.
B) direct method.
C) indirect method.
D) abc method.

Question

Quizplus · Accepted Answer

The relative sales value method is a commonly used and widely accepted method for allocating joint costs to products. This method allocates joint costs based on the relative sales value of each product. This means that products with higher sales value will receive a larger portion of the joint costs. This method is considered fair and accurate, as it takes into account the value that each product contributes to the overall joint costs.

One Conventional Way of Allocating Joint Costs to Products Is