The method of allocating joint costs that would assign the same amount of cost per unit to two joint products that sell for $5 and $15, respectively, is the
A)sales value at split-off method.
B)net realizable value method.
C)physical quantities method.
D)direct allocation method.

Question

Quizplus · Accepted Answer

The physical quantities method allocates joint costs based on the physical measure of the products, such as weight or volume, resulting in the same cost per unit regardless of sales value.

The Method of Allocating Joint Costs That Would Assign the Same