To record a "basket purchase" or to allocate a joint product cost, which method is the most rational?
A) average cost
B) relative sales value
C) fair value
D) amortized cost

Question

Quizplus · Accepted Answer

The relative sales value method is the most rational for allocating joint product costs because it allocates costs based on the proportion of each product's sales value to the total sales value, reflecting the economic benefit derived from each product.

To Record a "Basket Purchase" or to Allocate a Joint