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The Net Realizable Value (NRV) Method Allocates Joint Costs to Joint

question 110

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The net realizable value (NRV) method allocates joint costs to joint products produced during the accounting period on the basis of their relative NRV-final sales value plus separable costs.


Definitions:

Unit Selling Price

The price at which an individual unit of product is sold to customers.

Percentage

A way of expressing a number as a fraction of 100, denoted using the symbol "%".

Unit Variable Cost

The cost attributed to each unit produced, varying with the level of output.

Selling Price

The amount of money for which a product or service is sold to the customer.

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