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If By-Product Revenue Is Treated as Other Revenue Instead of Deducted

Question 105

Multiple Choice

If by-product revenue is treated as other revenue instead of deducted from the net-realizable-value of the main products:


A) overall gross margin of the company will be higher.
B) overall gross margin of the company will be lower.
C) the answer would depend on how joint product costs were allocated.
D) there is no difference in the overall gross margin of the company.

Correct Answer:

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