A product's net realizable value is calculated by:
A) Deducting the cost of goods sold from the sales revenue
B) Deducting the allocated joint costs and processing costs after split-off from the sales revenue
C) Deducting unit-level costs from the sales revenue
D) Deducting processing costs after split-off from the sales revenue

Question

Quizplus · Accepted Answer

Net realizable value is calculated by deducting the costs necessary to make a product ready for sale, such as processing costs after split-off, from the sales revenue.

A Product's Net Realizable Value Is Calculated By