Answer (C) is correct . No “separable production cost method” is recognized for allocating joint costs. The nature of the problem is such that all costs are joint and cannot be separated.
Answer (A) is incorrect because The physical quantities, or physical unit, method is one method of allocating joint costs to joint products.
Answer (B) is incorrect because The net realizable value method is one method of allocating joint costs to joint products.
Answer (D) is incorrect because The gross market value, or sales-value-at-split-off, method is one method of allocating joint costs to joint products.
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