Allocations of joint product costs can be based on the relative sales values of the products:
A) And never on the relative physical quantities of the products.
B) Plus an adjustment for future excess margins.
C) And not on any other basis.
D) At the "split-off point".
E) Only if the products contain both direct and indirect costs.

Question

Quizplus · Accepted Answer

Allocations of joint product costs are typically based on the relative sales values of the products at the "split-off point," which is the point in the production process where the joint products can be identified or separated.

Allocations of Joint Product Costs Can Be Based on the Relative