Which of the Following Joint Cost Allocation Methods Should Be

question 48

Multiple Choice

Which of the following joint cost allocation methods should be used for decision making?

• A) Physical output method
• B) Net realisable value method
• C) Sales value at split-off point method
• D) Joint costs are irrelevant for most decisions

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Definitions:

Unadjusted Trial Balance

A preliminary list of all accounts and their balances in the general ledger before any adjusting entries are made to prepare financial statements.