Which of the following is NOT one of acceptable methods of accounting for by-products?

Group of answer choices

The by-product could increase the joint cost when it has negative value.

The by-product is valued at its net realizable value.

The by-product could be allocated the joint cost using sales value at split off point method when it has a positive value.

The revenue from the sale of by-products is credited to "Other Revenue."

The by-products are recorded as inventory.

2)In the single rate method used in the support division cost allocation, when budgeted cost-allocations rate is used:

Group of answer choices

the manager of the supplier/support division bears the risk of unfavorable cost variances

user/operating divisions pay for inefficiencies of the supplier/support department

variations in actual usage by one operating division affect the costs allocated to other operating divisions

user/operating divisions pay for costs that exceed budgeted amounts