Which one of the following methods of allocating joint costs uses a measure of weight, size or number of units to allocate joint costs to joint products?
A)Net realizable value method.
B)Physical unit method.
C)Product measure method.
D)Cost measure method.
E)Sales value at split-off method.

Question

Quizplus · Accepted Answer

The physical unit method allocates joint costs based on the weight, size or number of units produced by each joint product. The other methods listed allocate joint costs based on either the estimated selling price or cost of each product, but not on physical units.

Which One of the Following Methods of Allocating Joint Costs