Which of the following is NOT a strategy for costing inventory when joint-cost circumstances are involved?
A) Allocate costs according to the market selling-price.
B) Allocate costs based on constant gross margin.
C) Allocate costs according to a predetermined physical measure.
D) Use the estimated net realizable value.
E) Aallocate costs according to the amount in the respective cost pools.

Question

Quizplus · Accepted Answer

The option "Allocate costs according to the amount in the respective cost pools" is not a recognized strategy for costing inventory in joint-cost circumstances. The other options are established methods for allocating joint costs.

Which of the Following Is NOT a Strategy for Costing