Which of the following methods allocates joint production costs based on their proportionate share of eventual revenue less further processing costs?
A)sales-value-at-split-off method
B)net realizable value method
C)physical units method
D)replacement cost method

Question

Quizplus · Accepted Answer

The net realizable value method allocates joint production costs based on the proportionate share of eventual revenue less further processing costs. This method considers the final sales value of products after further processing and subtracts any additional costs incurred after the split-off point to determine the basis for cost allocation.

Which of the Following Methods Allocates Joint Production Costs Based