Which of the following methods should be selected if a company terminates all processing at the split-off point and desires to use a cost-allocation approach that considers the "revenue-producing ability" of each product?
A)Gross margin at split-off method.
B)Reciprocal-accounting method.
C)Relative-sales-value method.
D)Physical-units methoD.
E)Net-realizable-value method.

Question

Quizplus · Accepted Answer

The relative-sales-value method is used when a company terminates all processing at the split-off point and desires to use a cost-allocation approach that considers the "revenue-producing ability" of each product. This method allocates joint costs to joint products based on their relative sales value at the split-off point.

Which of the Following Methods Should Be Selected If a Company