A Negative Consequence of Recording Byproducts in the Accounting Records

Multiple Choice

A negative consequence of recording byproducts in the accounting records when the sale occurs is that ________.

A) the revenue from the byproducts is usually fairly large and the accounting records will be distorted
B) earnings cannot be timed under this method
C) managers can be tempted to stockpile byproducts
D) it involves complex calculations compared to the production method