C is corrent because joint products that are not salable at split-off point require additional processing to make them marketable. To allocate joint costs to this type of product, a hypothetical sales value, representing the relative sales value at split-off, is calculated. This is done by subtracting the after-split-off processing costs from the price at point of sale.
A is incorrect because this method is used to compute a theortical sales value at split-off.
B is incorrect because this method is used to compute a theoretical sales value at split-off.
D is incorrect because this method is used to compute a theoretical sales value at split-off.
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