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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.
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given formula
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How do I figure the estimated activity and estimated allocation base?
annual usage rs 160000@ 40 per unit, cost of placing and receiving one order rs 200:annual carrying cost ; 25% of inventory value
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