In joint costing,the sales value at splitoff method is used frequently ________.
A) in a dynamic business environment where the selling prices change frequently
B) in anticipation of subsequent management decisions
C) when selling prices are dependent on further processing decisions
D) since the selling-price data exists at the splitoff

Question

Quizplus · Accepted Answer

The sales value at splitoff method is used frequently since the selling-price data exists at the splitoff point before any further processing takes place. This method is used to allocate joint costs to individual products based on their proportionate sales value at splitoff. It is mostly used in industries where the selling prices are predetermined and do not change frequently. This method assumes that the joint products are sold at the splitoff point without any further processing or additional costs.

In Joint Costing,the Sales Value at Splitoff Method Is Used