This is the most popular and convenient method because it
makes use of a realistic basis for apportioning joint costs. Under this method joint costs
are apportioned after ascertaining “what the traffic can bear”. In other words, the products
are made to bear a proportion of the joint cost on the basis of their ability to absorb the
same. Market value means weighted market value i.e. units produced × price of a unit of
joint product.
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