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:

Higher Returns

Higher Returns denote the increased earnings or gains achieved from an investment, surpassing the original amount invested.

Higher Risk

Higher risk denotes investments or actions that have a greater chance of loss or volatility, often associated with potentially higher returns.

Tax Rates

Percentages at which income, property, or sales are taxed by the government.

Required Rate

The minimum return that investors demand for investing in a specific asset or undertaking a project.