Which of the Following Is Not an Acceptable Method for Accounting

question 24

Multiple Choice

Which of the following is not an acceptable method for accounting for by-products in a joint manufacturing process?

• A)Costs before the split-off point are allocated to by-products.
• B)The estimated sales value of the by-product reduces the cost of the main product.
• C)The joint costs allocated to by-products are included in an account called "By-products Inventory."
• D)In some instances, the revenue from selling by-products may be treated as "other income" on the income statement.

Comprehend various performance evaluation measures (Sharpe, Treynor, Jensen's alpha, M2, and information ratio) and how they are calculated.

Appreciate the importance of risk-free returns in assessing investment performance.

Understand the concept of geometric average return and its calculation.

Recognize the significance of asset allocation and its impact on investment performance.

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