Multiple Choice
The drawback of the constant gross-margin percentage NRV method in joint costing is that it ________.
A) recognizes that profits are derived from the costs incurred after split-off
B) assumes the profit margin to be identical across all products
C) attempts to approximate the sales values at split-off by subtracting from final selling prices the separable costs incurred after the split-off point
D) ignores the separable costs of further processing
Correct Answer:
Verified
Correct Answer:
Verified
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