Constant gross margin rate, Cost Accounting

Assignment Help:

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.


Related Discussions:- Constant gross margin rate

Example of labour remuneration, Example of Labour Remuneration Beneath...

Example of Labour Remuneration Beneath a premium bonus scheme, workers obtained a guaranteed basic hourly minimum rate of pay in addition of a bonus of 50 percent of the time

Overheadd anarlysis, Following figures are taken from annual budget of ABC ...

Following figures are taken from annual budget of ABC manufacturers for the year 2013: Fixed factory overhead Rs. 4,000,000 Factory overhead absorption rate Rs. 70 per direct labor

Calculate the variable cost, Workmen shoes accumulated the following produc...

Workmen shoes accumulated the following production and cost data for the past 5 months. i)  Using the high/low method calculate the variable cost per unit and the fixed cos

Calculate the nominal interest rate, A 1- year Canadian bond with a face va...

A 1- year Canadian bond with a face value of 5000 can be purchased at 4800. a) Calculate the nominal interest rate in Canada. b) if the Canadian dollar is expected to depreci

Prepare cost sheet, A job order cost sheet for Lowery Company is shown belo...

A job order cost sheet for Lowery Company is shown below Date Direct Materials Direct Labor Manufacturing overhead Beg Bal Jan 1 5,000 6,000 5,100 8 6,000 12 8,000 6,400 25 2,000 2

Calculate cost for each unit, Dropping a segment - George's Grill analyzes ...

Dropping a segment - George's Grill analyzes profitability of three operating units: restaurant, bar, and billiards room. Revenues, variable costs, and attributable fixed costs (wh

QUESTION AND ANSWER, question and answer: XYZ trading purchased 6,850 killo...

question and answer: XYZ trading purchased 6,850 killos of material at a total cost of 21,920.00. The material price variance was 1,370.00 favorable. The standard price per killo w

Calculate the loss in consumer surplus, (a) Calculate the number of US impo...

(a) Calculate the number of US imports with and without the tariff. (b) Calculate the dead weight loss of the tariff. (c) Calculate the loss in consumer surplus resulting fro

Profit volume ratio, sales to profit volume ratio for three year

sales to profit volume ratio for three year

What are total fixed cost, Corporation has determined the contribution marg...

Corporation has determined the contribution margin ratio is 35% and the income tax rate is 40%. Required: A) Assume break-even volume in dollars is $1,500,000. What are total fixed

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd