Which of the methods of allocating joint costs usually is considered the simplest to implement?
A) estimated net realizable value
B) constant gross-margin percentage NRV
C) sales value at split-off
D) physical measures

Question

Quizplus · Accepted Answer

The sales value at split-off method is considered the simplest to implement because it allocates joint costs based on the relative sales value of each product at the point where they are split-off from the joint production process. This method does not require any estimations of net realizable values or calculations of gross margins, making it straightforward to apply.

Which of the Methods of Allocating Joint Costs Usually Is