When there is no ready market price available for an individual product at the split-off point, which method of allocation should be used?
A)sales value at split-off method.
B)net realizable value method.
C)physical quantities method.
D)direct allocation method.

Question

Quizplus · Accepted Answer

The net realizable value method is used when there is no market price available at the split-off point, as it estimates the final sales value minus any additional processing costs.

When There Is No Ready Market Price Available for an Individual