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The Constant Gross-Margin Percentage Method Differs from Market-Based Joint-Cost Allocation

Question 87

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The constant gross-margin percentage method differs from market-based joint-cost allocation method (sales value at split-off and estimated net realizable value) since no account is taken of profits earned before or after the split-off point when allocating joint costs.

The constant gross-margin percentage method differs from market-based joint-cost allocation method (sales value at split-off and estimated net realizable value) since no account is taken of profits earned before or after the split-off point when allocating joint costs.

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