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Commerce · Q707

Costing

Graduate and Post Graduate · Commerce · question 707

Q707

Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as

A.
direct cost measure method
B.
indirect cost measure method
C.
physical-measure method
Answer
D.
relative-measure method

Answer: Option C

Solution

Answer: Option C
Solution:
Method which allocates joint costs of joint products, considering physical measures such as volume or relative weight at point of split off is known as physical-measure method. The physical measure method allocates cost by the weight, volume, or some other measurement of the product that's produced.