Which of the following methods allocates joint production costs based on the pounds of product produced?
A)sales-value-at-split-off method
B)physical units method
C)constant gross margin percentage method
D)replacement cost method

Question

Quizplus · Accepted Answer

The physical units method allocates joint production costs based on the pounds of product produced. This method measures the quantity of output produced and weights the allocation of joint costs accordingly. The other methods listed allocate joint costs based on different factors such as sales value or replacement cost, but not based on the quantity of product produced.

Which of the Following Methods Allocates Joint Production Costs Based