split off costs
final cost of direct labour
final sales
final costs
Answer is Wrong!
Answer is Right!
The correct answer is: A. split off costs.
Net realizable value is the estimated selling price of a product in the ordinary course of business less the estimated costs of completion and disposal. It is used in accounting to calculate the value of inventory that is not yet complete or has not yet been sold.
Split off costs are the costs incurred after a joint process has been completed and the products can be sold separately. These costs are allocated to the individual products based on their relative sales value or some other appropriate basis.
The other options are incorrect because:
- B. final cost of direct labor is not a concept in accounting.
- C. final sales is the total amount of revenue that a company expects to generate from the sale of its products or services. It is calculated by multiplying the number of units sold by the selling price per unit.
- D. final costs is a general term that can refer to any type of cost incurred by a company. It is not a specific concept in accounting.