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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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cite some example on how to to calculate variable cost
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What are the limitations of unit cost.
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#what is the formula for calculating payback period and what are its limitations ?
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