The physical-measures method of allocating joint costs can sometimes distort the profitability of products.

Name: The physical-measures method of allocating joint costs can sometimes distort the profitability of products.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The physical-measures method allocates joint costs based on physical measures such as weight or volume, which may not accurately reflect the economic value or profitability of each product, leading to potential distortions in assessing their profitability.

The Physical-Measures Method of Allocating Joint Costs Can Sometimes Distort