One Method of Treating By-Products Is To

question 87

Multiple Choice

One method of treating by-products is to:

• A) treat the by-product in the same way as the main products.
• B) allocate all joint costs to both products and by-products.
• C) adjust the cost of the joint products by subtracting the net realisable value of the by-product from the joint costs.
• D) adjust the cost of the joint products by subtracting the cost of the by-product from the joint costs.

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Definitions:

Place Utility

The value added to products by having them available at a location where they are needed or wanted by consumers.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Sales Contract

A legally binding agreement between a buyer and seller which outlines the terms of sale for goods or services.

Car Dealership

A business that sells new or used cars at the retail level, based on a dealership contract with an automaker.