Which of the following is a commonly used joint cost allocation method?
A)high-low method
B)regression analysis
C)approximated sales value at split-off method
D)weighted average quantity technique

Question

Quizplus · Accepted Answer

The approximated sales value at split-off method is a commonly used joint cost allocation method where the costs are allocated based on the relative sales values of each product at the split-off point. This method is simple and easy to use, and is based on the assumption that the sales value is a good indicator of the economic value of the products. The high-low method and regression analysis are methods used to analyze cost behavior and are not related to joint cost allocation. The weighted average quantity technique is a method to calculate the average cost of inventory and is not related to joint cost allocation.

Which of the Following Is a Commonly Used Joint Cost