In Regard to Joint Cost Allocation,the "Split-Off Point" Is

question 99

Multiple Choice

In regard to joint cost allocation,the "split-off point" is:

• A)A physical basis method to allocate costs based on ratio of some physical characteristic.
• B)The difference between the actual and market value of joint costs.
• C)The point at which some products are sold and some remain in inventory.
• D)The point at which separate products can be identified.
• E)Not acceptable when using the value basis for allocating joint costs.

---

Definitions:

Depletion Expense

An accounting method used to allocate the cost of extracting natural resources over the period their benefits are received.