Explore BrainMass

Explore BrainMass

    Financial reporting, NRV or physical-measures method.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume that your company operates a joint-production process that generates three main products and one by-product. If you allocate joint costs only for financial reporting, would you ever care whether you use the NRV or the physical-measures method? Explain.

    © BrainMass Inc. brainmass.com June 4, 2020, 2:55 am ad1c9bdddf

    Solution Preview

    Well, you would only care if you didn't sell everything you made and you didn't use product cost for other purposes. These two methods will assign costs ...

    Solution Summary

    Allocating costs is more than a financial reporting exercise. Posting explains why.