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Which of the Following Statements Regarding the Physical-Measures Method of Allocating

Question 50

Multiple Choice

Which of the following statements regarding the physical-measures method of allocating joint-product costs is false?


A) Joint product costs are allocated proportional to economic values
B) It is based on the relative volume, weight, or other physical measure of each joint product at the split-off point
C) It is preferred when prices of output products are highly volatile or unpredictable
D) The total profit of the company will be the same regardless of which physical measure is used to allocated joint-product costs

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