Vidyalelo
Commerce · Q709

Costing

Graduate and Post Graduate · Commerce · question 709

Q709

Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute

A.
allocated joint costs
B.
cost of split off point
C.
Gross margin percentage
D.
total production cost of each product
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Second step, in constant gross margin percentage NRV method, to allocate joint cost is to compute total production cost of each product.