Constant Gross Margin Percentage NRV Method Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The first step in constant gross margin percentage, Net realizable value (NRV) method is to allocate joint, to compute

1. Gross margin percentage
2. total production cost of each product
3. allocated joint costs
4. cost of split off point

MCQ 2: The joint cost allocation method, in which individual product from joint products must gain a gross margin percentage is classified as

1. sales value at split off method
2. joint products value at split off method
3. constant gross margin percentage NRV method
4. Gross realizable value method

MCQ 3: The second step, in constant gross margin percentage Net Realizable Value (NRV) method, to allocate joint cost is to compute

1. allocated joint costs
2. cost of split off point
3. Gross margin percentage
4. total production cost of each product

MCQ 4: The gross margin is subtracted from sales value of all production to yield

1. labor cost incurred on product
2. production cost incurred on product
3. marketing cost incurred on product
4. all of above

MCQ 5: The percentage of overall gross margin is multiplied to final sales value of products total production is used to calculate

1. Gross margin in terms of amount of money
2. Gross margin in terms of separable costs
3. Gross margin in terms of total cost
4. Gross margin in terms of labor cost