Which method of accounting recognizes byproducts in the financial statements at the time their production is completed?
A) gross margin method
B) sales method
C) production method
D) market value method

Question

Quizplus · Accepted Answer

The production method of accounting recognizes byproducts in the financial statements at the time their production is completed. This method allocates joint production costs among the main product and any byproducts based on their relative sales value. As a result, byproducts are recognized in the financial statements at the time of production, rather than when they are sold or disposed of.

Which Method of Accounting Recognizes Byproducts in the Financial Statements