When two products are produced during a common process, what is the factor that determines whether the products are joint products or one principal product and a by-product?
A)Potential marketability for each product
B)Amount of work expended in the production of each product
C)Management policy
D)Relative total sales value

Question

Quizplus · Accepted Answer

The relative total sales value is the determining factor in deciding whether a product is a joint product or a by-product. Products with relatively little value are by-products.

When Two Products Are Produced During a Common Process, What