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

question 122

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

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.