Q705
Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as
A.
sales value at split off method
B.
joint products value at split off method
C.
constant gross margin percentage NRV method
AnswerD.
Gross realizable value method
Answer: Option C
Solution
Answer: Option C
Solution:
Joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as constant gross margin percentage NRV method. Joint cost is the manufacturing cost incurred on a joint production process which takes common inputs but simultaneously produces multiple products called joint-products.