Which of the following factors would NOT be one of the reasons why the sales value at the split-off would be used to allocate joint costs?
A) the sales value method is a good measure of benefits received
B) it helps determine manager compensation and performance evaluation
C) it is a method that is independent of further processing decisions
D) it provides a common allocation basis

Question

Quizplus · Accepted Answer

The sales value at split-off point method is used to allocate joint costs because it is a good measure of benefits received, independent of further processing decisions, and provides a common allocation basis. However, it is not directly related to determining manager compensation and performance evaluation. Other factors such as sales revenue or net income may be used for these purposes.

Which of the Following Factors Would NOT Be One of the Reasons