The sales value at splitoff method allocates joint costs to joint products produced during the accounting period on the basis of the relative total sales value at the splitoff point.

Question

Quizplus · Accepted Answer

The statement is correct. The sales value at splitoff method is a commonly used method for allocating joint costs to joint products based on their relative sales values at the splitoff point. This method assumes that the sales value is the most appropriate basis for allocation as it reflects the relative value of the different products produced.

The Sales Value at Splitoff Method Allocates Joint Costs to Joint