Which of the following is false regarding net realizable value (NRV)?

a. NRV is the estimated selling price after processing the product beyond the split-off point.
b. the constant NRV method uses an identical gross-margin percentage for each product
c. to allocate joint costs it is better to use a product's market value
d. at the split-off point than its estimated NRV

A. NRV is the estimated selling price after processing the product beyond the split-off point.

Explanation: Net realisable revenue is a term used in inventory management or in accounting to refer to the amount of cash expected front the sale of an asset or an inventory after subtracting the total cost associated with the disposal (sale) of that asset or inventory from the total amount received from the buyers of the inventory or the asset. Net realisable revenue can be used to determine the actual net value of an asset.

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