Which of the Following Statements Is True of the Methods

question 102

Multiple Choice

Which of the following statements is true of the methods for allocating joint costs?

• A) The sales value at split-off method lacks a common basis for allocating joint costs to products.
• B) The complexity of the sales value at split-off method increases when managers make frequent changes to the sequence of post-split-off processing decisions.
• C) The NRV method assumes that none of the markup is attributable to the separable costs.
• D) The NRV method treats the joint products as though they comprise a single product.

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