Asked by Antoine Miquel on Jul 16, 2024
Verified
The physical units method and the weighted average method are the only two common methods for allocating joint costs.
Physical Units Method
A cost allocation method used to distribute costs among different units of output, typically applied in industries with uniform products.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.
- Understand the principles behind allocating joint costs and the challenges involved.
Verified Answer
SD
Saswat DalaiJul 19, 2024
Final Answer :
False
Explanation :
There are several methods for allocating joint costs, including the physical units method, the weighted average method, the sales value at split-off method, and the net realizable value method, among others.
Learning Objectives
- Understand the principles behind allocating joint costs and the challenges involved.
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