Constant gross margin rate, Cost Accounting

Constant Gross Margin Rate

This method assumes that every product contributes an equal percentage of gross profit for every shilling of sales. It works back from gross margin to the joint costs allocation. It includes the given steps:

(i) Compute the overall rate of gross margin for every the products

(ii) Multiply the computed overall rate with the sales of every product to receive the gross margin of the product.

(iii) Deduct the gross margin from the sales value of the product to find out the net costs for each product.

(iv) Deduct separable costs from the net costs to receive joint costs allocated.

Posted Date: 2/7/2013 3:01:54 AM | Location : United States







Related Discussions:- Constant gross margin rate, Assignment Help, Ask Question on Constant gross margin rate, Get Answer, Expert's Help, Constant gross margin rate Discussions

Write discussion on Constant gross margin rate
Your posts are moderated
Related Questions
Using the table below, calculate the amount of overall increase of your purchasing power over the period of 5 years given the annual investment return rates and annual inflation ra

Quantitative and Qualitative Information in Accounting Systems The availability of information is the lifeblood of any type of management and cost accounting system. It is vi

Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and product

critically explain cost accounting as 1. a service activity 2. a descriptive/analytical discipline 3. an information system

The government of a small South Pacific island is considering whether to allow development of a small but valuable deposit of phosphate rock. Not having the resources to develop an


the following information relates to process 3 of a three stage production process for the month of january 2014. opening inventury 300 units comlete as to; material from proces

Overhead Absorption Absorption of overheads refers to the sharing out of overhead costs to the some cost centers such used the overheads. This is utilized when the overheads c

MARGINAL COSTING IS PREFERRED TO ABSORPTION COSTING IN DECISION MAKING WHY

Amazing acrobatics performs acrobatics in stadiums around the world. The average show sells about 1,000 tickets at $60 per ticket. Each show requires a team of 45 highly trained sp