The Constant Gross-Margin Percentage NRV Method of Joint Cost Allocation

question 121

Multiple Choice

The constant gross-margin percentage NRV method of joint cost allocation:

• A)involves allocating costs in such a way that maintaining the same gross margin percentage for each product that was obtained in prior years
• B)involves allocating costs in such a way that the overall gross margin percentage is identical for the individual products
• C)is the same as the estimated NRV method
• D)is the same as the sales-value at splitoff method

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