Which statement is true of the relative sales value method if all joints products are sold at the split-off point?
I.The products will have the same gross margin ratio.
II.The products will have the same gross margin per unit.
A)Both I and II
B)Neither I nor II
C)Only I
D)Only II

Question

Quizplus · Accepted Answer

The relative sales value method allocates joint costs based on the sales value of each product at the split-off point, leading to the same gross margin ratio for all products.

Which Statement Is True of the Relative Sales Value Method