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16) The sales method of accounting for byproducts allows companies to manage its reported earnings by the timing of the sale of byproducts. 16) 17) When a joint production process yields one product with a high total sales value compared to the total sales value of the other products of the process, that product is called a joint product. 17) 18) Byproducts are recognized in the general ledger either at the time production is completed or at the time of sale.

16) The sales method of accounting for byproducts allows companies to manage its reported earnings by the timing of the sale of byproducts. 16) 17) When a joint production process yields one product with a high total sales value compared to the total sales value of the other products of the process, that product is called a joint product. 17) 18) Byproducts are recognized in the general ledger either at the time production is completed or at the time of sale.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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16) The sales method of accounting for byproducts allows companies to manage its reported earnings by the timing of the sale of byproducts. 16) 17) When a joint production process yields one product with a high total sales value compared to the total sales value of the other products of the process, that product is called a joint product. 17) 18) Byproducts are recognized in the general ledger either at the time production is completed or at the time of sale. 18) 19) In joint costing, the constant gross-margin percentage method recognizes that the profit margin is not just attributable to the joint process but is also derived from the costs incurred after split-off. 19) 20) Before the split-off point, decisions relating to the sale or further processing of each identifiable product cannot be made independently of decisions about the other products. 20)
Transcribed Image Text:16) The sales method of accounting for byproducts allows companies to manage its reported earnings by the timing of the sale of byproducts. 16) 17) When a joint production process yields one product with a high total sales value compared to the total sales value of the other products of the process, that product is called a joint product. 17) 18) Byproducts are recognized in the general ledger either at the time production is completed or at the time of sale. 18) 19) In joint costing, the constant gross-margin percentage method recognizes that the profit margin is not just attributable to the joint process but is also derived from the costs incurred after split-off. 19) 20) Before the split-off point, decisions relating to the sale or further processing of each identifiable product cannot be made independently of decisions about the other products. 20)
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