Net realizable value is considered to be the best measure of the expected contribution of each product to the coverage of joint costs.

Question

Quizplus · Accepted Answer

Net realizable value takes into account the estimated selling price minus the estimated cost of completion and disposal, providing a more accurate measure of a product's expected contribution to joint costs compared to other measures such as sales value or production cost. Therefore, it is considered the best measure.

Net Realizable Value Is Considered to Be the Best Measure