Which method of joint cost apportionment is suitable where further processing costs after separation point are not incurred proportionately or all the joint products are not subject to further processing —

CS Executive · Cost and Management Accounting · PYQS · June 2016
Which method of joint cost apportionment is suitable where further processing costs after separation point are not incurred proportionately or all the joint products are not subject to further processing —
(A) Physical unit method
(B) Contribution margin method
(C) Relative market value method
(D) Market value after further processing method.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Joint and By-Products

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