Which of the following methods allocates a joint cost such that each product has the same cost of goods sold percentage?
A)constant gross margin percentage method
B)net realizable value method
C)physical units method
D)replacement cost method

Question

Quizplus · Accepted Answer

The constant gross margin percentage method allocates joint costs based on each product's expected gross margin percentage. This method ensures that each product has the same cost of goods sold percentage, regardless of differences in physical units or net realizable value.

Which of the Following Methods Allocates a Joint Cost Such