By Product , By Product Definition and methods of apportionment of Joint cost to By-Product

By Product , By Product Definition and methods of apportionment of Joint cost to By Product

Please note all CA Intermediate students this article covers the second part of the topic i.e. By-product same way as in joint product I tried to cover and make you understand all the aspects of a by-product in this article. Hope this will help in creating an understanding about by-product.

Meaning and the basic concept of by-product :

As the name indicates by-product is a product which is a result of processing of the main product. In other words, product in addition to the manufacturing of the main product. Basically, it is produced from the waste of scrap processing, which comes out as a result of processing of manufacturing of the main product. It can be called secondary or subsidiary product. It does not have significant importance as the joint product does.

The point at which it is separated from main product is called split-off point.

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Joint Product Definition and Methods of apportionment of Joint Cost

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