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5] Which of the following statements is true of the methods for allocating joint costs?A] The net realizable value method uses the sales value of the units sold during theaccounting period to allocate joint costs.B] The sales value at split-off method always results in the same gross-margin percentagefor all products.C] The sales value at split-off method allocates joint costs to each product in proportion tothe sales value of total production.D] The net realizable value method results in the same joint production cost per unit for allproducts.Answer:CDiff: 2
Objective:3AACSB:Analytical thinking6] How does the physical-measure method allocate joint costs?B
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Diff: 2Objective:3AACSB:Analytical thinking7] How does the net realizable value method allocate joint costs?DDiff: 2
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Objective:3AACSB:Analytical thinking8] Which of the following formulas would calculate the net realizable value of a product?DDiff: 2
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Objective:3AACSB:Analytical thinking
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9] Which of the following best describes how the constant gross-margin percentage NRVmethod allocates joint costs?A] a gross margin is calculated and for each product and then the gross margin is deductedalong with separable costs from the final sales value of a product to derive the joint costallocation for a productB] an overall gross margin is calculated and for each product and then the gross margin isdeducted along with separable costs from the final sales value of a all the productsproduced in the joint processing and the allocations are then made based on physicalvolume measuresC] an overall gross margin is calculated and for each product the gross margin is deductedalong with separable costs from the final sales value of a product to derive the joint costallocation for the productD] a gross margin is calculated and for each product and then gross margin is deductedalong from the final sales value of a product to derive the joint cost allocation for a product.Answer:CDiff: 2
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