How Does The Physical Measure Method Allocate Joint Costs? The physical quantities method allocates joint costs based on a physical measure of output (e.g., pounds or yards of material). The sales value method allocates joint costs based on the relative sales value for each of the joint products. How joint costs are allocated? There are
How Does The Net Realizable Value Method Allocate Joint Costs? The net realizable value method allocates joint costs to products based on their net real- izable values at the split-off point. The net realizable value is the estimated sales value of each product at the split-off point. How does the net realizable value method allocate
What Are Joint Products And Joint Costs? A joint cost is a cost that benefits more than one product, while a by-product is a product that is a minor result of a production process and which has minor sales. … Besides the split-off point, there may also be one or more by-products. What is the