Physical measure and net realizable value, Cost Accounting

Physical Measure and Net Realizable Value

Physical Measure/Unit

Joint costs are assigned to the joint products according to the ratio of physical measurement of the outputs at the split off point.

Net Realizable Value

Beneath this method, joint costs are assigned according to the net realizable*

Net Realizable Value = Ultimate Sales Value - Separable Costs.

Posted Date: 2/7/2013 3:01:10 AM | Location : United States







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