Answer
I disagree because the sales value at splitoff method doesn't consider future costs and benefits of further processing, which are crucial for making informed decisions.
Work Step by Step
I disagree with the statement that the sales value at splitoff method is the best for making decisions about whether a product should be sold at splitoff or processed further. While this method provides valuable information about the value of products at the splitoff point, it doesn't consider potential future costs and benefits associated with further processing. To make an informed decision, managers should consider not only the immediate splitoff value but also the incremental revenue and costs involved in additional processing. Using the sales value at splitoff method alone may lead to suboptimal decisions regarding further processing.
