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Author Question: Wharf Fisheries processes many of its seafood items to the demands of its largest customers, most of ... (Read 149 times)

scienceeasy

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Question 1

Under the benefits-received criterion, the physical-measure method is much less desirable than the sales value at split-off method. Why?

Question 2

Wharf Fisheries processes many of its seafood items to the demands of its largest customers, most of which are large retail distributors. To keep the accounting system simple, it has always assigned cost by the weight of the finished product. However, with increased competition, it has had to watch its prices closely and, in recent years, several items have incurred zero profit margins. After several weeks of investigation, your consulting firm has found that, while weight is important in processing of seafood, numerous items have very distinct processing steps and some items are processed through more steps than others. 

Required: 
Based on the findings of your consulting firm, what changes might you recommend to the company in the way of cost allocation among its products?


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Marked as best answer by scienceeasy on Mar 6, 2021

epscape

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scienceeasy

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Reply 2 on: Mar 6, 2021
Excellent


daiying98

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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