Difference between final sales value and separable costs is equal to
A. net income
B. net realizable value
C. Gross margin
D. Gross realizable value
Answer: Option B
Solution(By Examveda Team)
Difference between final sales value and separable costs is equal to net realizable value. The net realizable value method allocates joint costs on the basis of the final sales value less separable costs.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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