An Appropriate Way to Account for By-Products Is To

question 85

Multiple Choice

An appropriate way to account for by-products is to:

• A) subtract the net realisable value of the by-products from the cost of the joint process.
• B) deduct the by-product's sales value at split-off from the production cost of the main products.
• C) allocate a portion of the joint cost to the by-product.
• D) subtract the net realisable value of the by-products from the cost of the joint process AND/OR deduct the by-product's sales value at split-off from the production cost of the main products.