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A Reason Why a Physical-Measure to Allocate Joint Costs Is

Question 111

Multiple Choice

A reason why a physical-measure to allocate joint costs is less preferred than the sales value at splitoff is:


A) a physical measure such as volume is difficult to estimate because of shrinkage
B) physical volume usually has little relationship to the revenue producing power of products
C) a physical measure usually results in the costs being allocated to the product that weighs the most
D) All of these answers are correct.

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