When May the Revenue Allocation Be Weighted Using Physical Units

question 53

Multiple Choice

When may the revenue allocation be weighted using physical units?

• A)Selling prices are unstable and unit costs are difficult to calculate.
• B)The individual products within the bundle have approximately the same value.
• C)Other methods cannot be used for various reasons.
• D)All of these answers are correct.

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Definitions:

Capital Account

A capital account is an account on a company's balance sheet that represents the equity investment of owners and shareholders.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to a permanent equity account.

General Ledger

A thorough collection of financial records that documents every financial transaction undertaken by a business.

Adjustments Credit Column

The part of a financial or accounting document where adjustments are made to credits, increasing the value of certain accounts.