The net realizable value method can be used for products for which there may not be any market price available at splitoff.

Question

Quizplus · Accepted Answer

The net realizable value method is used to determine the value of a product when there is no market price available at splitoff. It takes into account the expected selling price of the final product, the costs of completing it, and any other costs associated with the product.

The Net Realizable Value Method Can Be Used for Products