First step in constant gross margin percentage NRV method is to allocate joint to compute

A. Gross margin percentage

B. total production cost of each product

C. allocated joint costs

D. cost of split off point

Answer: Option A

Solution(By Examveda Team)

First step in constant gross margin percentage NRV method is to allocate joint to compute Gross margin percentage. Gross margin is the difference between revenue and cost of goods sold divided by revenue. Gross margin is expressed as a percentage.