The sales value at split-off point method of joint cost allocation is most appropriate when:
A) Products have roughly equal sales values
B) Products have roughly equal separable costs
C) Most products are sold at the split-off point
D) Few products are sold at the split-off point

Question

Quizplus · Accepted Answer

The sales value at split-off point method is most appropriate when most products are sold at the split-off point because it allocates joint costs based on the relative sales value of each product at the point where the joint processes are completed.

The Sales Value at Split-Off Point Method of Joint Cost