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Allocation of joint costs:

Name three market-based methods of allocating joint costs to joint products: a._ b._ c._

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Question added by Anayatullah Tahir , Finance Manager , Etqan Projects
Date Posted: 2014/03/24
Rashad Moursi
by Rashad Moursi , Finance Director & Business Development, International Business Transformer Owners Repr. - Hotels , Investment and financial

a) Sales value at split off method 

b) Estemated net realizable values method

c) constant gross-margin persintage methed

Maroun Abou Chaaya
by Maroun Abou Chaaya , Finance Manager & Internal Auditor , HMD Africa S.A.L (Offshore)

a- sales value at split-off

b- net realizable value (nrv)

c- constant gross-margin percentage

Aziz ur Rehman ur Rehman
by Aziz ur Rehman ur Rehman , Assistant Manager Finance , Central Power Puchasing Agency (CPPA)

 

 

1. The market or sales value method, based on the relative market values of the individual products.

 

2. The quantitative or physical unit method, based on some physical measurement unit such as weight, linear measure, or volume.

 

3. The weighted average method, based on a predetermined standard or index of production.

 

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

1. Physical Quantities Method--joint costs are allocated to the joint products based on their relative physical measure (such as volume,weight, etc.)

2.Constant Gross Margin Percentage Method

3.Sales Value Method

  a.Net Realizable Value Method

  b.No Sales-value at Split-off Point

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    2.  Sales Value Method

 

        a. Net Realizable Value Method

        b. No Sales-value at Split-off Point