When by-product value is recognised at the time of sale, the value may be recorded as sales revenue, other income, or as a reduction in cost of sales.

Question

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By-product value can be recognized in financial statements in several ways, including as sales revenue, other income, or as a reduction in the cost of sales, depending on the accounting policies of the organization and the significance of the by-product.

When By-Product Value Is Recognised at the Time of Sale