Which methods should be selected if a company terminates

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Problem 1: Which of the following methods should be selected if a company terminates all processing at the split-off point and desires to use a cost-allocation approach that considers the "revenue-producing ability" of each product?

Option 1: Relative-sales-value method.

Option 2: Reciprocal-accounting method.

Option 3: Physical-units method.

Option 4: Gross margin at split-off method.

Option 5: Net-realizable-value method.

Reference no: EM132972583

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