Which Joint Cost Allocation Method Is Described by the Following

question 157

Multiple Choice

Which joint cost allocation method is described by the following statement? Each product is assigned a weighting factor which is multiplied by the number of units. Joint cost is prorated to the products on the basis of each product's share of total weighted units.

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

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Definitions:

Technical Skills

The ability to perform specific tasks related to a certain field or profession, involving practical and mechanical knowledge as well as proficiency.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Intangible Resources

Non-physical assets possessed by a firm, such as brand reputation, intellectual property, and organizational culture, which can offer competitive advantage.

Intangible Resource

Assets that cannot be physically touched or held, such as brand reputation, intellectual property, or organizational culture.