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Chapter 9
Joint and by-products
The nature of process costing is such that processes often produce more than one
product. These additional products may be described as either joint products or by-
products. Essentially joint products are main products whereas by-products are
incidental to the main products.
9.1 Joint products
Joint products are two or more products separated in the course of processing, each
having a sufficiently high saleable value to merit recognition as a main product.
9.2 By-products
By-products are outputs of some value produced incidentally in manufacturing
something else (main products).
The distinction between joint and by-products is important because the accounting
treatment of joint products and by-products differs.
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