Under the Net Realizable Method of Allocating Joint Costs, Which

question 19

Multiple Choice

Under the net realizable method of allocating joint costs, which of the following equations is used to compute the value of products processed beyond the split-off point?

• A)Net Realizable Value = Selling Price at Split-Off × Quantity
• B)Net Realizable Value = (Final Selling Price × Quantity) + Additional Processing Costs
• C)Net Realizable Value = (Final Selling Price × Quantity) - Additional Processing Costs
• D)Net Realizable Value = (Final Selling Price × Quantity) ÷ Additional Processing Costs

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Definitions:

Compound

A substance formed from two or more chemical elements that have bonded together.

Secondary Amine

An amine where the nitrogen atom is bonded to two alkyl or aryl groups and one hydrogen atom.

Compounds

Substances formed from two or more chemical elements, held together by chemical bonds.

Systematic Name

The official nomenclature of a chemical compound that provides information about its structure.