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+1  Q: 

SEO benefits of URL as: www.example.com/category/subcategory/

Our SEO advisors are claiming that having our URLs in the form:

 www.example.com/category/subcategory/

leads to better ranking in the search engines, etc., but I'm not sure if that's true/valid.

Do others use this practice in their own websites?

The simpler alternative for us would be to do something like:

www.example.com/showcat.php?cat=Category-SubCategory

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