MEANING OF JOINT PRODUCTS AND BY- PRODUCTS
Agricultural product industries, chemical process industries, sugar industries, and extractive industries are some of the industries where two or more products of equal or unequal importance are produced either simultaneously or in the course of processing operation of a main product.
In all such industries, the management is faced with the problems such as, valuation of inventory, pricing of product and income determination, problem of taking decision in matters of further processing of by-products and/or joint products after a certain stage etc. In fact, the various problems relate to
(i) apportionment of common costs incurred for various products and
(ii) aspects other than mere apportionment of costs incurred upto the point of separation.
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