Which of the following statements is true of the methods for allocating joint costs?
A) The sales value at split-off method lacks a common basis for allocating joint costs to products.
B) The complexity of the sales value at split-off method increases when managers make frequent changes to the sequence of post-split-off processing decisions.
C) The NRV method assumes that none of the markup is attributable to the separable costs.
D) The NRV method treats the joint products as though they comprise a single product.

Question

Quizplus · Accepted Answer

The Net Realizable Value (NRV) method allocates joint costs based on the final sales value minus separable costs, assuming that the markup is not attributable to the separable costs but to the joint process.

Which of the Following Statements Is True of the Methods