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

Multiple Choice

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

A) a physical measure such as volume is difficult to estimate than sales value
B) physical volume usually has little relationship to the revenue producing power of products
C) a physical measure usually results in less costs being allocated to the product that weighs the most
D) customers will easily understand that the products are overpriced