When a Single Manufacturing Process Yields Two Products, One of Which

question 64

Multiple Choice

When a single manufacturing process yields two products, one of which has a relatively high sales value compared to the other, the two products are respectively known as

• A)joint products and byproducts.
• B)joint products and scrap.
• C)main products and byproducts.
• D)main products and joint products.
• E)byproducts and scrap.

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Definitions:

Unrealized Gains

Increases in the value of an asset that has not been sold, and thus the gain has not been "realized" through a transaction.

Comprehensive Income

The total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Available-For-Sale Securities

Financial investments that a company holds with the intent of selling for a profit but are not actively traded or held to maturity.

Unrealized Loss

A loss that occurs on paper due to the decrease in value of an investment but has not yet been realized through actual sale or exchange.