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

question 52

Multiple Choice

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

• A) relative sales value method.
• B) net realisable value method.
• C) joint cost allocation method.
• D) constant gross margin method.

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Definitions:

Output Per Worker

measures the average production or services provided by each worker, often used as a productivity indicator.

Discriminates

The act of making distinctions or treating someone differently based on characteristics other than individual merit.

Cost Efficient

A condition or process that achieves the intended result with minimal wasted resources or effort.

Productive

The efficiency with which inputs (such as labor and capital) are converted into outputs (goods and services).