Which joint cost allocation method is described by the following statement? Joint cost is backed into. First, overall sales revenue minus overall costs (joint plus further processing costs) is calculated to yield gross profit and the gross profit percentage. Then, each product is assigned the same cost of goods sold percentage.
A)constant gross margin method
B)weighted average method
C)sales-value-at-split-off method
D)net realizable method

Question

Quizplus · Accepted Answer

This method is known as the constant gross margin method.

Which Joint Cost Allocation Method Is Described by the Following