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.

Cost beyond Joint Split-Off Costs (1) Yes Yes (2) Yes No (3) No Yes (4) No No