If the necessary information is available, which method is preferred when allocating joint costs?
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 sales value at split-off method is preferred when allocating joint costs because it is the most accurate method. This method allocates costs based on the relative sales value of the products at the split-off point. This method is more accurate than the other methods because it takes into account the different values of the products.

If the Necessary Information Is Available, Which Method Is Preferred