For the Purposes of Allocating Joint Costs to Joint Products

question 115

Multiple Choice

For the purposes of allocating joint costs to joint products, the sales price at the point of sale, reduced by the cost to complete after split-off, is assumed to be equal to the: (CPA adapted)

• A) Total costs.
• B) Joint costs.
• C) Sales price less a normal profit margin at point of sale.
• D) Net realizable value at split-off.

---

Definitions:

Fork

A tool or machine part with two or more prongs, used for lifting, carrying, or positioning objects.

Standard Transmission

A type of gearbox where gear changes are manually selected by the driver, commonly referred to as a manual transmission.

Rpm

Revolutions per minute, a unit of rotational speed that specifies the number of turns completed by an object around an axis in one minute.