In relation to the supply of a service to a joint operation by one of the joint operators, which of the following statements is correct?
A) A joint operator can recognise 100% of the earned through the supply of services to the joint operation.
B) A joint operator is entitled to recognise a profit from the supply of services to itself.
C) A joint operator cannot earn a profit on supplying services to itself.
D) A joint operator is not able to recognise the service revenue or service cost for the services supplied to the joint operation.

Question

Quizplus · Accepted Answer

A joint operator cannot earn a profit on supplying services to itself because it is essentially providing services to its own interest in the joint operation.

In Relation to the Supply of a Service to a Joint