When a company produces a by-product along with its primary product, as part of a joint process, the following method(s) may be used to account for the by-product transaction:
A)The production method only
B)The sales method only.
C)The production and sales methods, either method is sufficient.
D)The production and sales methods, in conjunction with one another.

Question

Quizplus · Accepted Answer

Both the production method and the sales method can be used independently to account for by-product transactions. Each method has its own approach to recognizing the by-product's value and impact on financial statements.

When a Company Produces a By-Product Along with Its Primary