Question

The physical units method of joint cost allocation allocates costs based on a.the estimated selling price of the various finished products minus the costs to sell the products. b.the market values of the various finished products. c.a weight factor multiplied by physical units. d.an objective, quantitative metric such as pounds, square feet, or gallons.

Answer 1

Answer:

d. an objective, quantitative metric such as pounds, square feet, or gallons.

Explanation:

In Accounting, Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production. The various type of costs are;

1. Product cost is the expenses incurred when a product is sold.

2. Period cost refers to the period in which costs are incurred.

3. Fixed cost refers to costs that remains constant over variations in production activity, irrespective of amount of goods.

3. Variable cost refers to cost which are the same per unit of production but vary directly with level of output.

4. Direct costs refer to the costs that are peculiar to a particular department or area while indirect cost can't be traced to any.

5. Manufacturing overhead are all indirect cost required in producing a good that isn't associated with direct materials or direct labor.

Generally, the physical units method of joint cost allocation allocates costs based on an objective, quantitative metric such as pounds, square feet, or gallons.