How Does the Physical-Measure Method Allocate Joint Costs

Multiple Choice

How does the physical-measure method allocate joint costs?

A) allocates joint costs to joint products in a way that each product has an identical gross-margin percentage
B) allocates joint costs to joint products on the basis of a comparable physical measure at the split-off point
C) allocates joint costs to joint products on the basis of the relative sales value at the split-off point
D) allocates joint costs to joint products on the basis of relative NRV