The joint-cost allocation method that recognizes the revenues at split-off but does not consider any further processing costs is the:
A)relative-sales-value method.
B)net-realizable-value method.
C)physical-units method.
D)reciprocal-accounting methoD.
E)gross margin at split-off method.

Question

Quizplus · Accepted Answer

The relative-sales-value method is based on assigning joint costs to individual products based on their relative sales value at the split-off point. This method does not consider any further processing costs and recognizes revenues at the split-off point.

The Joint-Cost Allocation Method That Recognizes the Revenues at Split-Off