Joint costs are most frequently allocated based upon relative
A)profitability.
B)conversion costs.
C)prime costs.
D)sales value.

Question

Quizplus · Accepted Answer

Joint costs are allocated based on the sales value of each product because it gives a fair representation of the relative value of each product, taking into account market demand and willingness to pay. Profitability, conversion costs, and prime costs do not necessarily reflect the value of each product to consumers.

Joint Costs Are Most Frequently Allocated Based Upon Relative