The Physical-Measure Method ________

question 73

Multiple Choice

The physical-measure method ________.

• A) allocates joint costs to joint products in a way that each product has an identical gross-margin percentage
• B) allocates joint costs to joint products on the basis of a comparable physical measure at the splitoff point
• C) allocates joint costs to joint products on the basis of the relative sales value at the splitoff point
• D) allocates joint costs to joint products on the basis of relative NRV

---

Definitions:

First-in

A term indicating the prioritization or usage of resources, often in the context of inventory management.

Materials

Raw substances or components that are converted through the manufacturing process into finished goods.

Equivalent Units

A method in process costing that transforms units that are incomplete into an equivalent number of units that are considered fully completed.

Conversion Costs

Conversion costs are the combined costs of labor and overhead expenses required to convert raw materials into finished products.