Q702
Difference between final sales value and separable costs is equal to
A.
net income
B.
net realizable value
AnswerC.
Gross margin
D.
Gross realizable value
Answer: Option B
Solution
Answer: Option B
Solution:
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.