Which of the Following Is Not True of the Joint

question 119

Multiple Choice

Which of the following is not true of the joint allocation methods?

• A) the sales value at the split-off method is the best measure of benefits received
• B) when selling prices of all products at the split-off are unavailable, the NRV method is the best alternative
• C) the constant gross-margin percentage NRV method treats the joint products as though they comprise a single product
• D) when selling prices are at the split-off point are available but further processing is necessary, the NRV method is the preferred allocation method

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