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

question 111

Multiple Choice

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

• A)a physical measure such as volume is difficult to estimate because of shrinkage
• B)physical volume usually has little relationship to the revenue producing power of products
• C)a physical measure usually results in the costs being allocated to the product that weighs the most
• D)All of these answers are correct.

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Definitions:

Planning Phase

The stage in a process, project, or sales strategy where objectives are set, and detailed plans are made to achieve goals.

Negotiation

A tactical conversation that settles a problem in a manner satisfactory to all involved parties.

Metaphors

Figurative language used to represent a concept or an object by referring to another concept or object with similar characteristics.

Analogies

Analogies are comparisons between two things that highlight similarities, often used to explain or clarify concepts.