Question

Which one of the following methods uses units of output to allocate joint costs to joint products?

A. Net realizable value method.
B. Physical measures method.
C. Net sales value method.
D. Sales value at split-off method.
E. Activity-based costing.

Answer 1

The Physical measures method uses units of output to allocate joint costs to joint products.

Step-by-step explanation:

The method that uses units of output to allocate joint costs to joint products is the Physical measures method. This method assigns the joint costs based on the relative measure of output or some other relevant measure, such as weight or volume, of the joint products.