ures a product that yields the by-product "Yum." The only costs Abel Corp. man Sociated with Yum are selling costs of P.10 for each unit sold. Abel accounts for les of Yum by deducting Yum's separable costs from Yum's sales, and then educting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. wIf Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 a. b. c. Increase by P 110,000 d. Be unaffected

ures a product that yields the by-product "Yum." The only costs Abel Corp. man Sociated with Yum are selling costs of P.10 for each unit sold. Abel accounts for les of Yum by deducting Yum's separable costs from Yum's sales, and then educting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. wIf Abel changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Abel's gross margin would Increase by P 90,000 Increase by P 100,000 a. b. Increase by P 110,000 d. Be unaffected If Abel changes its method of accounting for Yom's sales by showing the net amount as other income, then Abel's gross margin would Decrease by P 90,000 Increase by P 100,000 a. b. c. Increase by P 110,000 d. Be unaffected

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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