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.

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Definitions:

Customer Support

Services and assistance provided by a company to its customers before, during, and after a purchase to ensure a satisfying experience.

Corporate Communications

Strategic management of information and communication processes within a company, including internal and external communications.

Secure

Refers to measures or conditions that ensure protection from harm, attack, or unauthorized access.

Broadcast Method

The technique or medium used to distribute content to a wide audience through television, radio, or the internet.