The Physical Output Method of Joint Product Cost Allocation

question 8

Multiple Choice

The physical output method of joint product cost allocation

• A) is useful for all product costing
• B) is rarely used
• C) is useful only when the output for all main products can be expressed in the same physical measure
• D) is useful when products have similar net realisable values

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Definitions:

Revenues

The complete earnings derived from transactions involving goods or services that are fundamental to an organization's core functions.

Expenses

Outflows or the using up of assets or incurrence of liabilities from a company's activities intended to generate revenue.

End-Of-Period Spreadsheet

A tool used in accounting to gather all account balances at the end of an accounting period to prepare financial statements.

Dividends

Money paid out to shareholders by a business, generally coming from the business's profits.