When the selling prices at the split-off are unavailable, the NRV method is the best alternative.

Question

Quizplus · Accepted Answer

When the selling prices at the split-off are not available, the NRV (Net Realizable Value) method is the best alternate method to determine the value of joint products. The NRV method estimates the selling prices of the joint products after further processing minus the estimated costs of completion and the selling expenses. Therefore, statement A is true.

When the Selling Prices at the Split-Off Are Unavailable, the NRV