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:

RRSPs

Registered Retirement Savings Plans, a type of financial account in Canada for holding savings and investment assets to support retirement.

Reduced Pension

A retirement plan that provides beneficiaries with lower benefits than originally anticipated or agreed upon.

Contributory Pension Plans

Retirement plans where both the employer and employees contribute to the fund that will be used to provide retirement benefits to the employees.

Contributions

The act of giving or adding to something larger, often refers to financial contributions in a business or investment context but can also apply to contributions of time, effort, or resources.