Asked by Samantha Matias on May 28, 2024
Verified
The physical units method of joint cost allocation uses market values in the allocation process.
Physical Units Method
An approach to allocating joint costs based on the number of physical units produced at a certain stage in manufacturing.
Market Values
The current price at which an asset or service can be bought or sold in the marketplace.
- Comprehend the fundamental concepts of distributing joint costs and the difficulties associated with the process.
Verified Answer
VS
Vanesa SernaMay 29, 2024
Final Answer :
False
Explanation :
The physical units method allocates joint costs based on the physical output or volume of each product, not on their market values.
Learning Objectives
- Comprehend the fundamental concepts of distributing joint costs and the difficulties associated with the process.
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