Allocating joint costs to products based on physical quantities will make all of the products have the same gross margin ratio if they are sold at the split-off point.

Question

Quizplus · Accepted Answer

Allocating joint costs to products based on physical quantities does not necessarily make all of the products have the same gross margin ratio, even if they are sold at the split-off point. This is because different products may have different selling prices and production costs, which can affect their gross margin ratio.

Allocating Joint Costs to Products Based on Physical Quantities Will