The Sales-Value-At-Split-Off Method Allocates Joint Production Costs Based on Each

question 49

Multiple Choice

The sales-value-at-split-off method allocates joint production costs based on each product's share of

• A)sales value revenues have not been realized at the split-off point.
• B)costs realized at the split-off point.
• C)final sales value less further processing costs after the split-off point.
• D)units produced at the split-off point.

---

Definitions:

Demand SHIFT

A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.

Complement

A good whose demand increases when the price of another good decreases. Examples include a parking lot and shopping mall or a hamburger and a hamburger bun.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Normal Good

A type of good for which demand increases as the income of the consumer increases, reflecting a direct relationship between income and demand.