Which of the following statements is true concerning the net realizable value method of joint-process costing?
A)The method implies a matching of output costs with revenues generated by each input.
B)The method implies a matching of input costs with revenues generated by each output.
C)The method implies a matching of input revenues with costs generated by each output.
D)the method implies a matching of output costs with revenues generated by each input.

Question

Quizplus · Accepted Answer

The net realizable value method of joint-process costing involves allocating joint costs to joint products based on their relative net realizable values, which is essentially matching the input costs (the joint costs) with the revenues generated by each output (the individual products).

Which of the Following Statements Is True Concerning the Net