The constant gross margin NRV method allocates joint costs so that the gross margin percentage for each main product is identical.

Question

Quizplus · Accepted Answer

The constant gross margin NRV (net realizable value) method of allocating joint costs ensures that each main product achieves the same gross margin percentage by allocating the costs based on the final sales value minus separable costs of each product.

The Constant Gross Margin NRV Method Allocates Joint Costs So