Which of the following is a DISADVANTAGE of the physical-measure method of allocating joint costs?
A)The measurement basis for each product may be different.
B)The need for a common denominator.
C)The physical measure may not reflect the product's ability to generate revenues.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

All of these answers are correct. The physical-measure method can result in different measurement bases and may not reflect a product's revenue-generating ability. Additionally, a common denominator is required to effectively use the method.

Which of the Following Is a DISADVANTAGE of the Physical-Measure