The Sales Value at Splitoff Method ________

question 107

Multiple Choice

The sales value at splitoff method ________.

• A) allocates joint costs to joint products on the basis of the relative total sales value at the splitoff point
• B) allocates joint costs to joint products on the basis of a comparable physical measure at the splitoff point
• C) allocates joint costs to joint products on the basis of relative NRV
• D) allocates joint costs to joint products in a way that each product has an identical gross-margin percentage

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Definitions:

Over Budget

Over budget refers to a situation where actual spending exceeds the planned or allocated amount for a particular budget category.

Budget

An estimate of income and expenditure for a set period of time, often used as a plan for financial operations.

Activity Base

A measure used for allocating costs to cost objects, typically related to the level of activity or volume of goods produced that incurs costs.

Advertising Campaigns

A series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC).