Which of the following statements is false regarding an incremental analysis? ...
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Accounting
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Which of the following statements is false regarding an incremental analysis?
If the sales value at split-off is greater than the NRV, sell after further processing.
If the sales value at split-off is less than the NRV, sell after further processing.
If the sales value at split-off is greater than the NRV, sell it without further processing.
The sales value at split-off and the NRV need to be analyzed to determine whether to sell or process further.
Which of the following statements is false regarding an incremental analysis?
If the sales value at split-off is greater than the NRV, sell after further processing. | ||
If the sales value at split-off is less than the NRV, sell after further processing. | ||
If the sales value at split-off is greater than the NRV, sell it without further processing. | ||
The sales value at split-off and the NRV need to be analyzed to determine whether to sell or process further. |
The sales value at split-off method allocates joint costs of production using the
prospective sales values of the process's total production and the relative proportion of each product's sales value to the total. | ||
relative proportion of each product's sales value to the total. | ||
final sales value less further processing costs after the split-off point. | ||
prospective sales values of the process's total production. |
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