Chapter 16, Problem 16.7Q

To determine

Relative Sales Value at Split off Method:

Relative sales value at split off method allocates joint cost on the basis of sum total of sales value at the split off point.

Net Realizable Value (NRV) Method:

NRV method is a method of joint cost allocation which takes into consideration additional costs required to be incurred in the further processing of the products.

To identify: Situation where NRV method can be used but not sales value at split off method.