Which of the Following Statements Is True of the Methods

question 109

Multiple Choice

Which of the following statements is true of the methods for allocating joint costs?

• A) Under the cause-and-effect criterion, the physical-measure method is highly desirable.
• B) Byproducts are never excluded from the denominator used in the physical-measure method.
• C) The NRV method is never used when the selling prices of joint products vary frequently.
• D) The sales value at split-off method follows the benefits-received criterion of cost allocation.

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