Which allocation method recognizes that costs incurred after the split-off point are part of the cost total on which profit is expected to be earned?
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 considers costs incurred after the split-off point as part of the total cost, which is used to determine the profit expected to be earned.

Which Allocation Method Recognizes That Costs Incurred After the Split-Off