The joint-cost allocation method that recognizes the revenues at split-off but does not consider any further processing costs is the:
A) relative-sales-value method.
B) net-realizable-value method.
C) physical-units method.
D) reciprocal-accounting method.
E) gross margin at split-off method.

Question

Quizplus · Accepted Answer

The relative-sales-value method allocates joint costs based on the relative sales value of each product at the split-off point, without considering any further processing costs.

The Joint-Cost Allocation Method That Recognizes the Revenues at Split-Off