Saturday, June 2, 2012

Which of the following is a disadvantage of the physical-measure method of allocating joint costs

ACCOUNTING

Multiple Choice

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 the above are disadvantages.

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