Q. Which of the following statement is correct? (Solved)
1. A joint product is regarded as an important sale-able item, and so it should be separately costed. The profitability of each joint product should be assessed in the cost accounts.
2. A by-product is not important as a sale-able item, and whatever revenue it earns is a ‘bonus’ for the organisation. Because of their relative insignificance, by-products are not separately costed.
3. Both A&B are correct
4. None
- c. Both A&B are correct