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

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Definitions:

PERT Project

Program Evaluation and Review Technique, a project management tool used to plan, schedule, and control complex projects.

Expected Completion

An estimated time or date by which a project, task, or operation is predicted to be finished, taking into account various factors affecting its progress.

Duration Variance

A measure used in project management to quantify the difference between the planned and actual duration of project activities.

PERT Analysis

Project Evaluation and Review Technique, a statistical tool used in project management designed to analyze and represent the tasks involved in completing a given project, incorporating time estimates for completing each task.