Under the realized value approach,no value is recognized for by-products or scrap until they are actually sold.

Question

Quizplus · Accepted Answer

Under the realized value approach, the value of by-products or scrap is recognized only when they are actually sold, and not before that. This approach only recognizes revenue when it is earned and received, which means that no value is assigned to these products until they are sold.

Under the Realized Value Approach,no Value Is Recognized for By-Products