Dictionary of Accounting Terms: relative sales value method
relative sales value method
manner of allocating joint costs in proportion to relative sales values of joint products. For example, joint products X and Y have a joint cost of $1200 and X sells for $70 while Y sells for $50. Then X would be allocated $1200 ¥ ($70/$120) = $700 of the joint cost while Y would be allocated $1200 ¥ ($50/$120) = $500 of the cost.
