Net Realizable Value MethodMultiple Choice: a. Net realizable value at split-off is used to: (1) Allocate separable
Question:
Net Realizable Value Method—Multiple Choice:
a. Net realizable value at split-off is used to:
(1) Allocate separable costs.
(2) Determine relevant costs.
(3) Determine break-even in sales dollars.
(4) Allocate joint costs.
b. Net realizable value at split-off is used to allocate:
c. For purposes of allocating joint costs to joint products, the net realizable value at split-off is equal to:
( 1 ) Sales price less a normal profit margin at point of sale.
(2) Final sales price reduced by cost to complete after split-off.
(3) Total sales value less joint costs at point of split-off.
(4) Separable product cost plus a normal profit margin.
d. The method of accounting for joint product costs that will produce the same gross margin for all products is the:
(1) Net realizable value method.
(2) Physical quantities method.
(3) Both methods.
(4) Neither method.
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