Joint costs can be allocated either using a physical basis or a value basis.

Name: Joint costs can be allocated either using a physical basis or a value basis.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Joint costs refer to costs incurred in producing two or more products simultaneously. These costs cannot be directly allocated to individual products, and hence they are allocated either using a physical basis (such as weight or volume) or a value basis (such as sales value or net realisable value). Therefore, the statement is true.

Joint Costs Can Be Allocated Either Using a Physical Basis