Your company manufactures three joint products. After separation, the three products are transferred to three different sales

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Your company manufactures three joint products. After separation, the three products are transferred to three different sales organizations in the company. The products are charged to the three organizations on the basis of cost, using an allocation based on physical units. Under what circumstances might this be an appropriate cost-determination method for this purpose? Under what circumstances would it not be an appropriate method?

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Cost Accounting Principles And Applications

ISBN: 9780028034287

6th Edition

Authors: Horace R. Brock, Linda Herrington

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