If By-Product Revenue Is Treated as Other Revenue Instead of Deducted

question 139

Multiple Choice

If by-product revenue is treated as other revenue instead of deducted from the net-realizable-value of the main products:

• A) Overall gross margin of the company will be higher.
• B) Overall gross margin of the company will be lower.
• C) The answer would depend on how joint product costs were allocated.
• D) There is no difference in the overall gross margin of the company.