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
D. Gross realizable value method
Answer: Option C
Solution (By Examveda Team)
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.
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