Joint cost allocation method for joint products, which is based on achievable value is known as
A. joint products value at split off method
B. main product cost at split off method
C. Gross realizable value method
D. net realizable value method
Answer: Option D
Solution(By Examveda Team)
Joint cost allocation method for joint products, which is based on achievable value is known as net realizable value method. 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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