Product C is one of several joint products that come out of Department M.The joint costs incurred in Department M total $40,000.Product C can be sold at split-off or processed further and sold as a higher quality item.The decision to process further should be based on the
A)assumption that the $40,000 is irrelevant.
B)allocation of the $40,000,using the net realizable value.
C)allocation of the $40,000,using a physical measures approach.
D)allocation of the $40,000,using the relative sales value at split-off method.

Question

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The Answer of Product C is one of several joint products that come out of Department M.The joint costs incurred in Department M total $40,000.Product C can be sold at split-off or processed further and sold as a higher quality item.The decision to process further should be based on the
A)assumption that the $40,000 is irrelevant.
B)allocation of the $40,000,using the net realizable value.
C)allocation of the $40,000,using a physical measures approach.
D)allocation of the $40,000,using the relative sales value at split-off method.

Product C Is One of Several Joint Products That Come