The Joint-Cost Allocation Method That Recognizes the Revenues at Split-Off

question 34

Multiple Choice

The joint-cost allocation method that recognizes the revenues at split-off but does not consider any further processing costs is the:

• A)relative-sales-value method.
• B)net-realizable-value method.
• C)physical-units method.
• D)reciprocal-services method.
• E)gross margin at split-off method.

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Definitions:

Price-Weighted Index

A stock market index in which each stock influences the index in proportion to its price per share.

Share Prices

The current price at which a company's shares can be bought or sold in the stock market.

Market Values

The present cost at which a service or asset is available for purchase or sale on the open market.

Yield to Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.