A by-product is a secondary product derived from the production of a primary good. The sale of by-products can enhance profitability by offsetting disposal costs or adding revenue streams. For example, tar is a by-product of refining oil for petrol.
Joint Production refers to the interconnected processes that yield outputs of different goods, typically reducing costs compared to separate production. It can result from natural phenomena or strategic firm decisions to utilize expensive equipment efficiently.
An in-depth exploration of process costing systems, their application in production, historical context, key events, and detailed explanations with practical examples and comparisons.
An in-depth look at the separation point in process costing, where by-products or joint products split off and are subsequently processed independently.
