The sales method of accounting for the costs of a by-product
A)treats the by-product as nonexistent until the by-product is sold.
B)recognizes only the NRV of the by-product.
C)recognizes by-products as soon as they are produced.
D)recognizes the by-product once it has been determined to be processed further.

Question

Quizplus · Accepted Answer

The sales method of accounting for by-products does not recognize them until they are sold, treating them as nonexistent until that point.

The Sales Method of Accounting for the Costs of a By-Product