Which of the following is an advantage of the sales value at split-off method?
A)Easy to calculate.
B)Market prices for some industries change constantly.
C)The sales price might not be available.
D)Conceptually superior to the revenue recognition method.

Question

Quizplus · Accepted Answer

The advantage of the sales value at split-off method is that it is easy to calculate. This method involves assigning joint costs to products based on their relative sales values at the split-off point. This avoids the need to estimate market prices or future revenues, making it a straightforward approach to allocating joint costs. However, it may not be suitable for industries where market prices are constantly changing or where the sales price is not available. Therefore, option A is the best choice as it correctly identifies one of the main advantages of this method.

Which of the Following Is an Advantage of the Sales