The method of pricing by-products/scrap where no value is assigned to these items until they are sold is known as the
A)net realizable value at split-off point method.
B)sales value at split-off method.
C)realized value approach.
D)approximated net realizable value at split-off methoD.

Question

Quizplus · Accepted Answer

The realized value approach is the method where by-products or scrap are not assigned any value until they are actually sold. This contrasts with methods that attempt to assign value at the point of split-off or based on estimated net realizable values.

The Method of Pricing By-Products/scrap Where No Value Is Assigned