In general, it is better to use a product's market value at the split-off point than its estimated net realizable value in allocating joint costs.

Name: In general, it is better to use a product's market value at the split-off point than its estimated net realizable value in allocating joint costs.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

The market value at the split-off point is a more accurate measure of the relative sales value of the joint products than their estimated net realizable values.

In General, It Is Better to Use a Product's Market