Allocating joint costs to products using a value basis method is based on their relative:

A) Sales values.
B) Direct costs.
C) Gross margins.
D) Total costs.
E) Variable costs.

Value Basis Method

A valuation approach for determining the worth of an asset or liability based on a specific foundational value, potentially involving adjustments over time.

Joint Costs

The costs that are incurred from producing multiple products in the same process, not easily attributed to individual products.

Sales Values

The total revenue generated from goods or services sold by a business.