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The by-product’s relative sales value is quite low compared with that of the main products. The preferable accounting for the by-product’s net realizable value is as
A. An addition to the revenues of the other products allocated on the basis of their respective net realizable values.
B. Revenue in the period it is sold.
C. A reduction in the common cost to be allocated to the three main products.
D. A separate net realizable value upon which to allocate some of the common costs.
Option C >>>>>>>>>>>A reduction in the common cost to be allocated to the three main products.
