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Joint Cost Allocation-Multiple Choice Question

Question

For joint cost allocation:

  1. only the net realizable method can be used to allocate joint costs to by-products
  2. only the relative sales value method can be used to allocate joint costs to scrap
  3. separable costs do not include disposal costs
  4. no joint costs are allocated to by products or scrap
  5. the most accurate method is the one using physical measure of output

 

 

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    Giuseppe

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