Which of the Following Reasons Explain Why a Physical-Measure to Allocate

Multiple Choice

Which of the following reasons explain why a physical-measure to allocate joint costs is less preferred than the sales value at split-off point?

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