1.- A limitation of using the physical output method in allocating joint costs to joint products is that it treats low-value products that are large in size as if they were valuable. II.- Joint costs include direct materials, direct labor, and manufacturing overhead. * Only statement II is true O Only statement I is true Both statements are false O Both statements are true

1.- A limitation of using the physical output method in allocating joint costs to joint products is that it treats low-value products that are large in size as if they were valuable. II.- Joint costs include direct materials, direct labor, and manufacturing overhead. * Only statement II is true O Only statement I is true Both statements are false O Both statements are true

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.-Direct material, direct labour, and overhead costs incurred up to the initial split-off point are joint costs II.-The Physical output method/ Average unit cost method of allocating joint cost is simple but may not be accurate. Both statements are false Both statements are true O Only statement Il is true O Only statement I is true
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