Which Joint Cost Allocation Method Is Described by the Following

question 118

Multiple Choice

Which joint cost allocation method is described by the following statement? Overall sales revenue minus overall costs (joint plus further processing costs) is calculated to yield gross profit and the gross profit percentage. Each product is then assigned the same cost of goods sold percentage.

• A)constant gross margin method
• B)weighted average method
• C)sales-value-at-split-off method
• D)net realizable method

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Definitions:

Collateral Agreements

Legal contracts where a borrower pledges an asset as security for a loan, which the lender can claim if the loan is not repaid.