Which method of allocating joint costs is based on the proportional sales values at the split-off point?
A)Proportional method
B)Physical quantities method
C)Relative sales value method
D)Joint allocation method

Question

Quizplus · Accepted Answer

The relative sales value method allocates joint costs based on the relative sales values of each product at the split-off point. This method is appropriate when the products have different market values and can be sold at different prices. It is considered the most accurate and fair method of allocating joint costs.

Which Method of Allocating Joint Costs Is Based on the Proportional