Which of the following statements is true of the methods for allocating joint costs?
A. Under the cause-and-effect criterion, the physical-measure method is highly desirable.
B. Byproducts are never excluded from the denominator used in the physical-measure method.
C. The NRV method is never used when the selling prices of joint products vary frequently.
D. The sales value at splitoff method follows the benefits-received criterion of cost allocation.
Answer:D
Which of the following statements is true of the methods for allocating joint costs?
A. Under the cause-and-effect criterion, the physical-measure method is highly desirable. B. Byproducts are never excluded from the denominator used in the physical-measure method. C. The NRV method is never used when the selling prices of joint products vary frequently. D. The sales value at splitoff method follows the benefits-received criterion of cost allocation.