Thus these byproducts can become a source of additional income. Also read Long and Short Term Funding Definition Differences and Examples Banner klo Difference between ByProducts Main Products and Joint Products A product can be determin to be a byproduct or joint product or main product by applying two checks. Both are explain briefly below. Mark If one product has more value than another product which coincidentally is produc from the same type of raw material then that product is consider a primary product.
Likewise if a product
Has a lower value than another product it Philippines WhatsApp Number List is consider a byproduct. Sometimes all products have more or less the same value and are produc from the same type of raw materials. If so they are consider a joint product. Manufacturing purposes If the company aims to produce only one product the specifi product is consider the main product. All other products are treat as byproducts. Likewise if a company has the goal of producing two or more products from the same type of raw material all products are consider joint products.
Also read Company Financial
SOP Examples and Download Indonesia Phone Number List Templates Here Recording ByProducts in Accounting byproduct Costing methods for byproducts are divid into two categories Noncost methods or sales value methods and cost methods. For more details lets discuss it in depth below Noncost or sales value method In this method joint production costs are not allocat to byproducts . Any revenue generat from the sale of byproducts is crit to revenue or to the cost of the main product. costs incurr after separation from the main product can be offset by income earn from byproducts. For inventory cost determination an independent value can be assign to byproduct.
