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Which of the Following Is True of the Physical-Measure Approach

Question 114

Multiple Choice

Which of the following is true of the physical-measure approach of allocating joint costs?


A) Costs cannot be allocated if the measurement basis for each product are different.
B) Physical measures usually result in less costs being allocated to the product that weighs the most.
C) The physical measure reflects a product's ability to generate revenues.
D) Obtaining comparable physical measures for all products is always straightforward.

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