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)Allocate costs according to the amount in the respective cost pools.

Question

Quizplus · Accepted Answer

Allocating costs according to the amount in the respective cost pools is not a recognized method for joint-cost allocation. The other options are standard methods used in joint-cost allocation scenarios.

Which of the Following Is NOT a Strategy for Costing