Allocations of Joint Product Costs Can Be Based on the Relative

question 119

Multiple Choice

Allocations of joint product costs can be based on the relative sales values of the products:

• A) And never on the relative physical quantities of the products.
• B) Plus an adjustment for future excess margins.
• C) And not on any other basis.
• D) At the "split-off point".
• E) Only if the products contain both direct and indirect costs.