The method of accounting for joint product costs that will produce the same gross margin percentage for all products is the:
A) Replacement method.
B) Physical quantities method.
C) Net realizable value method.
D) Units produced method.

Question

Quizplus · Accepted Answer

The net realizable value method allocates joint costs based on the final sales value minus any additional processing costs, ensuring the same gross margin percentage for all products.

The Method of Accounting for Joint Product Costs That Will