The net realizable method of allocating joint costs is most suitable for processes where
A)physical measures are the most accurate way to allocate joint costs
B)some products can be processed beyond the split-off point and sold for much higher prices
C)weighted physical measures are the most accurate way to allocate joint costs
D)market values are hard, if not impossible, to estimate

Question

Quizplus · Accepted Answer

The net realizable value (NRV) method of allocating joint costs is most suitable for situations where some products can be processed beyond the split-off point and sold for much higher prices. This method allocates costs based on the final sales value minus any additional processing costs, making it ideal for scenarios where the end value of products significantly differs.

The Net Realizable Method of Allocating Joint Costs Is Most