The sales value at splitoff method ________.
A) allocates joint costs to joint products on the basis of the relative total sales value at the splitoff point
B) allocates joint costs to joint products on the basis of a comparable physical measure at the splitoff point
C) allocates joint costs to joint products on the basis of relative NRV
D) allocates joint costs to joint products in a way that each product has an identical gross-margin percentage

Question

Quizplus · Accepted Answer

The sales value at splitoff method allocates joint costs to joint products on the basis of the relative total sales value at the splitoff point, which means that the costs are assigned based on the value that each product contributes to the overall revenue.

The Sales Value at Splitoff Method ________