Which of the following is correct regarding the "distribution method according to physical quantities", which is one of the methods used in the distribution of combined costs to products?
Which of the following is correct regarding the "distribution method according to physical quantities", which is one of the methods used in the distribution of combined costs to products?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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i. In the distribution of combined expenses, the physical product quantities that occur at the split point are taken as basis.ii. A change in the selling price of any of the combined products will cause the costs of all products to change by making all the calculations from scratch.
iii. The products whose costs will be distributed must be defined by a common measure in terms of quantity.
Which of the following is correct regarding the "distribution method according to physical quantities", which is one of the methods used in the distribution of combined costs to products?
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