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    Financial reporting, NRV or physical-measures method.

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    Assume that your company operates a joint-production process that generates three main products and one by-product. If you allocate joint costs only for financial reporting, would you ever care whether you use the NRV or the physical-measures method? Explain.

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    Solution Preview

    Well, you would only care if you didn't sell everything you made and you didn't use product cost for other purposes. These two methods will assign costs ...

    Solution Summary

    Allocating costs is more than a financial reporting exercise. Posting explains why.

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