Allocating joint costs to products can be based on their relative:
A) Market values
B) Direct costs
C) Gross margins
D) Total costs
E) Variable costs

Question

Quizplus · Accepted Answer

Allocating joint costs to products based on their market values is the most appropriate method as it takes into account the relative demand and supply for each product. This method reflects the actual value that each product contributes to the market and therefore provides a fair and accurate representation of the costs incurred by each product.

Allocating Joint Costs to Products Can Be Based on Their