Which of the Following Statements Regarding Accounting for By-Products Is

question 42

Multiple Choice

Which of the following statements regarding accounting for by-products is true?

• A) If all products are sold in the same period as they are produced, treating by-product revenue as other revenue will result in a higher overall gross margin.
• B) If all products are sold in the same period as they are produced, treating by-product net-realizable-value as a deduction of the cost of the main products will result in a higher overall gross margin.
• C) If all products are sold in the same period as they are produced, total reported revenues will be the same regardless of how by-product revenue is accounted for.
• D) If all products are sold in the same period as they are produced, the reported gross margin will be the same regardless of how by-product revenue is accounted for.

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