Which of the following methods of allocating costs use market-based data?
A)Sales value at splitoff method
B)Estimated net realizable value method
C)The constant gross-margin percentage method
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All three methods (Sales value at splitoff method, estimated net realizable value method, and constant gross-margin percentage method) use market-based data in allocating costs. The sales value at splitoff method uses the selling prices of each joint product at the splitoff point, the estimated net realizable value method uses estimated selling prices less estimated costs to complete and sell the product, and the constant gross-margin percentage method uses historical gross-margin percentages.

Which of the Following Methods of Allocating Costs Use Market-Based