The method of pricing by-products/scrap where no value is assigned to these items until they are sold is known as the
A)net realizable value at split-off point method.
B)sales value at split-off method.
C)realized value approach.
D)approximated net realizable value at split-off method.

Question

Quizplus · Accepted Answer

The realized value approach assigns no value to by-products or scrap until they are actually sold, at which point the revenue is recognized.

The Method of Pricing By-Products/scrap Where No Value Is Assigned