Which of the Following Methods Allocates Joint Costs Using a Measure

question 30

Multiple Choice

Which of the following methods allocates joint costs using a measure such as pounds, gallons, or inches at the split-off point?

• A)physical units method
• B)weighted average method
• C)market value at split-off method
• D)net realizable value method

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining those activities.

Labor Union

Worker organization that seeks to secure economic benefits for its members.

Collective Bargaining

Negotiations between union and management to obtain agreements on wages, working conditions, and other issues.

Labor Force

The total number of employed and unemployed people.