The Drawback of the Constant Gross-Margin Percentage NRV Method in Joint

question 20

Multiple Choice

The drawback of the constant gross-margin percentage NRV method in joint costing is that ________.

• A) it recognizes that profits are derived from the costs incurred after splitoff
• B) it assumes the profit margin to be identical across all products
• C) it attempts to approximate the sales values at splitoff by subtracting from final selling prices the separable costs incurred after the splitoff point
• D) it ignores the separable costs of further processing

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Definitions:

Job Crafting Behaviours

The actions and strategies individuals use to reshape and redefine their job roles and tasks to improve fit, satisfaction, engagement, and overall work experience.

Core Job Characteristic

Fundamental attributes of a job that affect employee motivation and job satisfaction, such as task variety and autonomy.

Experienced Responsibility

The feeling or sense of obligation and accountability for outcomes of one's work or actions.

Psychological Identification

The process by which an individual assimilates aspects, properties, or attributes of another person, incorporating them into their own self-concept.