Asked by Abhishek Chaudhary on Jul 05, 2024
Verified
The joint cost allocation method that is not based on the economic characteristics of the joint products is the:
A) joint cost allocation method.
B) relative sales value method.
C) physical units method.
D) net realisable value method.
Economic Characteristics
Traits that define the nature of an economy, including factors like market structure, growth rate, and resource distribution.
Physical Units Method
An approach to costing that assigns costs based on the actual physical quantity of output produced.
- Assess the joint production methods, the distribution methods for joint expenses, and economic evaluations related to extra processing or selling at the point of division.
Verified Answer
JG
Jasmine GriffinJul 11, 2024
Final Answer :
C
Explanation :
The physical units method simply allocates joint costs based on the physical units produced by each joint product, regardless of their economic value. This method is often used when joint products have similar economic characteristics or when there is no reliable sales or value data available. Therefore, the answer is C - physical units method.
Learning Objectives
- Assess the joint production methods, the distribution methods for joint expenses, and economic evaluations related to extra processing or selling at the point of division.
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