Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 16 - Cost Allocation: Joint Products and Byproducts - Assignment Material - Questions - Page 652: 16-10

Answer

To simplify the Net Realizable Value (NRV) method, a company can standardize post-splitoff point processing steps and use standard selling prices. This approach reduces the complexity and sensitivity to variations in selling prices and process changes, akin to using standard costs in costing systems.

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