The Benefits-Received Criteria for Allocating Joint Costs Indicate Market-Based Measures

question 70

Multiple Choice

The benefits-received criteria for allocating joint costs indicate market-based measures are preferred because:

• A)physical measures such as volume are a clearer basis for allocating cost than other measures
• B)other measures are more difficult to calculate
• C)revenues are usually the best indicator of the benefits received
• D)None of these answers is correct.

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Definitions:

Business Ethics

Principles and standards that guide behavior in the world of business, ensuring trustworthiness and fairness in operations.

Interactive System

A computer-based system designed for user interaction to perform specific tasks or obtain information.

Stakeholder

An individual or group that has an interest or concern in an organization, project, or event, which can be affected by or affect its outcomes.

Community

A group of people living in the same place or having a particular characteristic in common.