The characteristic that is most often used to distinguish a product as either a main product or a by-product is the amount of:
A) sales value of the products produced during the common production process.
B) direct manufacturing costs (e.g. ,materials)incurred before the split-off point.
C) physical measures in the products produced during the common production process.
D) time (i.e. ,labor)required to produce the products from start to finish.

Question

Quizplus · Accepted Answer

The amount of sales value of the products produced during the common production process is the primary characteristic used to distinguish between main products and by-products. Main products are the primary output of a production process that has a relatively high sales value, while by-products are secondary outputs that have a lower sales value relative to the main product. This distinction is important for cost accounting purposes because it affects how the costs of production are allocated to the different products.

The Characteristic That Is Most Often Used to Distinguish a Product