Allocating joint costs based upon a physical measure considers the revenue-generating ability of individual

products.

ANS: F DIF: Moderate OBJ: 11-4

12. Monetary allocation measures recognize the revenue generating ability of each product in a joint process.

ANS: T DIF: Moderate OBJ: 11-4

13. The relative sales value method requires a common physical unit for measuring the output of each
product.

ANS: F DIF: Easy OBJ: 11-4

14. Joint costs are allocated to main products, but not to by-products

ANS: T DIF: Easy OBJ: 11-5

15. Net realizable value equals product sales revenue at split-off plus any costs necessary to prepare and
dispose of the product.

ANS: F DIF: Moderate OBJ: 11-4