The Estimated Net Realizable Method Allocates Joint Costs on the Basis

question 143

Multiple Choice

The estimated net realizable method allocates joint costs on the basis of

• A)expected final sales value less separable costs of production and marketing.
• B)value added after the splitoff point.
• C)sales value less value added after the splitoff point.
• D)revenue less all direct manufacturing costs after splitoff point.
• E)relative numbers of physical units of each product.

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Definitions:

Treasury Shares

Shares of stock that were issued and later repurchased by the issuing company, reducing the amount of outstanding stock on the open market.