Which of the following statements is true of the methods for allocating joint costs?
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Prep This preview shows page 11 - 13 out of 69 pages. 5) Which of the following statements is true of the methods for allocating joint costs?A) The net realizable value method uses the sales value of the units sold during theaccounting period to allocate joint costs.B) The sales value at split-off method always results in the same gross-margin percentagefor all products.C) The sales value at split-off method allocates joint costs to each product in proportion tothe sales value of total production.D) The net realizable value method results in the same joint production cost per unit for allproducts.Answer:CDiff: 2 Objective:3AACSB:Analytical thinking6) How does the physical-measure method allocate joint costs?B Get answer to your question and much more Diff: 2Objective:3AACSB:Analytical thinking7) How does the net realizable value method allocate joint costs?DDiff: 2 Get answer to your question and much more Objective:3AACSB:Analytical thinking8) Which of the following formulas would calculate the net realizable value of a product?DDiff: 2 Get answer to your question and much more Objective:3AACSB:Analytical thinking We have textbook solutions for you!The document you are viewing contains questions related to this textbook. Financial Markets and Institutions Madura Expert Verified
9) Which of the following best describes how the constant gross-margin percentage NRVmethod allocates joint costs?A) a gross margin is calculated and for each product and then the gross margin is deductedalong with separable costs from the final sales value of a product to derive the joint costallocation for a productB) an overall gross margin is calculated and for each product and then the gross margin isdeducted along with separable costs from the final sales value of a all the productsproduced in the joint processing and the allocations are then made based on physicalvolume measuresC) an overall gross margin is calculated and for each product the gross margin is deductedalong with separable costs from the final sales value of a product to derive the joint costallocation for the productD) a gross margin is calculated and for each product and then gross margin is deductedalong from the final sales value of a product to derive the joint cost allocation for a product.Answer:CDiff: 2 Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 69 pages? Upload your study docs or become a Course Hero member to access this document We have textbook solutions for you!The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook. Financial Markets and Institutions Madura Expert Verified What are the methods that allocating joint cost?Three methods of allocating joint product costs are the physical units method, the market value method, and the net realizable method. The constant gross margin percentage method is also used to allocate joint cost.
What is the typical approach to allocating joint product costs to products?Two methods are commonly used to allocate these joint costs to the joint products: the physical quantities method and the sales value method.
Which method allocates joint costs on the basis of each product's relative sales value at the splitoff point?The sales value at splitoff method allocates joint costs on the basis of each product's relative sales value at the splitoff point.
How does the net realizable value method allocate joint costs quizlet?The net realizable value method allocates joint costs to joint products on the basis of the relative net realizable value (the final sales value minus the separable costs of production and marketing) of the total production of the joint products during the accounting period.
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