Which of the Following Statements Is True, in Regard to the Production

Which of the following statements is true, in regard to the production method versus the sales method?

A) The sales method is preferred because it recognizes the sale of the by-product and scrap at the point of sale.
B) The production method is preferred because it recognizes the sale of the by-product and scrap at the point of production.
C) Either method can be chosen because the overall effect of the by-product and scrap transactions should be incidental to a company's primary business.
D) Either method can be chosen because the overall effect of the by-product and scrap transactions is material to the decision-making process.