Which of the Following Methods Allocates Joint Production Costs Based

question 47

Multiple Choice

Which of the following methods allocates joint production costs based on their proportionate share of eventual revenue less further processing costs?

• A)sales-value-at-split-off method
• B)net realizable value method
• C)physical units method
• D)replacement cost method

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Definitions:

Voluntary Export Restraint

An agreement between exporting and importing countries where the exporter agrees to limit the quantity of goods exported to the importing country.

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to increase their price and make domestic products more competitive.

Most-Favored-Nation Status

A trade status granting a nation the best trading terms available to any other nation, such as lowest tariffs or highest import quotas.