Use the Following Information for the Next 2 Questions

question 96

Multiple Choice

Use the following information for the next 2 questions.
A joint input costing $500 results in four distinct products at the point of split-off. Relevant data follows:
-Assume the total final sales value of a set of joint products exceeds the total joint costs, and that the incremental revenue from processing each product further exceeds the separable costs. Which joint cost allocation method could result in the reporting of a loss for some products and a profit for others?

• A) Net realizable value method
• B) Physical output method
• C) Sales value at split-off method
• D) Constant gross margin net realizable value method

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Definitions:

Existing Firm

A company or business that currently operates within a market, as opposed to new entrants or startups.

Functioning

Pertains to the operation or performance of a system, component, or organism, denoting how well it works or fulfills its intended purpose.

Make A Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Best Employees

Individuals who excel in their roles, contributing significantly to their organization through high performance, commitment, and positive impact on overall goals and culture.