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Commerce · Q605

Costing

Graduate and Post Graduate · Commerce · question 605

Q605

First ranked product, in incremental revenue allocation method, is classified as

A.
primary product
Answer
B.
First incremental product
C.
Second incremental product
D.
Third incremental product

Answer: Option A

Solution

Answer: Option A
Solution:
First ranked product, in incremental revenue allocation method, is classified as primary product. Primary products are goods that are available from cultivating raw materials without a manufacturing process.