Which of the following statements is true regarding the consideration of allocation costs at split-off?
A)Allocating joint costs using the average costs is the quickest and most accurate process.
B)The sales value at the split-off method is the only true way to allocate joint costs to joint products.
C)There are three methods that can be used to allocate costs.
D)If there are two products equal in value at the split-off point, it would make the most sense to use an even allocation of costs.

Question

Quizplus · Accepted Answer

There are generally three methods used to allocate joint costs: the physical units method, the sales value at split-off method, and the net realizable value method.

Which of the Following Statements Is True Regarding the Consideration