Which of the following statements regarding accounting for by-products is true?
A) If all products are sold in the same period as they are produced, treating by-product revenue as other revenue will result in a higher overall gross margin.
B) If all products are sold in the same period as they are produced, treating by-product net-realizable-value as a deduction of the cost of the main products will result in a higher overall gross margin.
C) If all products are sold in the same period as they are produced, total reported revenues will be the same regardless of how by-product revenue is accounted for.
D) If all products are sold in the same period as they are produced, the reported gross margin will be the same regardless of how by-product revenue is accounted for.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements regarding accounting for by-products is true?
A) If all products are sold in the same period as they are produced, treating by-product revenue as other revenue will result in a higher overall gross margin.
B) If all products are sold in the same period as they are produced, treating by-product net-realizable-value as a deduction of the cost of the main products will result in a higher overall gross margin.
C) If all products are sold in the same period as they are produced, total reported revenues will be the same regardless of how by-product revenue is accounted for.
D) If all products are sold in the same period as they are produced, the reported gross margin will be the same regardless of how by-product revenue is accounted for.

Which of the Following Statements Regarding Accounting for By-Products Is