(Net realizable value versus realized value) Indicate whether each item listed below is associated with the (1) realized value approach or (2) the net realizable value approach.

a. Lias the advantage of better timing.

b. Ignores value of by-product/scrap until it is sold.

c. Is simplest.

d. Is used to reduce the cost of main products when by-products are produced.

e. Credits either cost of goods sold of main products or the joint cost when the by-product inventory is recorded.

f. Presents proceeds from sale of by-products as other revenue or other income.

g. Is appropriate if the by-product’s net realizable value is small.

h. Is less conservative.

i. Is the most clerically efficient.

j. Should be used when the by-product’s net realizable value is large.

LO1