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

question 45

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) computes gross margin before allocating the costs to the products
• C) is the same as the estimated NRV method
• D) is the same as the sales-value at split-off method

---

Definitions:

Informal Rulemaking

Refers to the process by which administrative agencies create regulations under less formal procedures than formal rulemaking, typically involving notice and an opportunity for public comment but not a formal hearing.

Federal Register

The official publication of the United States federal government that includes rules from government agencies, proposed regulations, and notices to the public.

Subpoena

A legal document ordering someone to attend court as a witness or to present documents or other evidence.

Regulatory Mission

A regulatory mission is the core objective or purpose of regulatory agencies or bodies, which involves creating, implementing, and enforcing regulations to protect public welfare, safety, and interests.