A reason why a physical-measure to allocate joint costs is less preferred than the sales value at splitoff is:
A)a physical measure such as volume is difficult to estimate because of shrinkage
B)physical volume usually has little relationship to the revenue producing power of products
C)a physical measure usually results in the costs being allocated to the product that weighs the most
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

Physical volume usually has little relationship to the revenue producing power of products, and a physical measure such as volume is difficult to estimate because of shrinkage.

A Reason Why a Physical-Measure to Allocate Joint Costs Is