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On the other hand, the by-product is nothing but the subsidiary product which emerges out, in the course of manufacturing of the main product. So, the main difference between joint product and by-product lies in the fact that whether the company produced the product on purposely, or it emerged additionally, as a result of ongoing production. Have a glance at the article to know, other differences amidst the two concepts. Content: Joint Product Vs By-Product
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Definition of Joint ProductJoint products are the products that are simultaneously produced with the same input, by a common process and each possesses considerably high sale value that none of them can be recognized as the major product. In joint products, when raw material is processed, it results in more than two products. The production of joint products is performed consciously, by the management of the respective organization, i.e. the management aims at producing all the products. There is a separation point called as a split-off point, from where the products are separated and identified. At this stage, either the products are sold directly or go for further processing, to turn out as finished product. The amount incurred up to the split-off point is termed as joint cost. Example: Common examples of the joint product are diesel, gasoline, lubricants, paraffin, etc. are obtained as joint products, in the processing of crude oil. Definition of By-ProductBy Product can be understood as the subsidiary or secondary product which is incidentally produced, along with the main product, and has saleable or usable value. While producing the main product, there are instances when another product emanates which are of minor importance, as compared to the main product, are the by-product. These are produced from the discarded material, i.e. scrap or waste of the main process. The split-off point is the stage, at which the by-products are separated from the main product. On the basis of market conditions, by product can be classified as:
With the change in the economic conditions, the relationship between by-products and main product also encounters change, as when the economic value of the by-product is greater than the main product, then the by-product of such an industry becomes the main product and vice versa. Example: Molasses is obtained as a by-product during the production of sugar, and while manufacturing soap, glycerin is obtained as a by-product. The substantial differences between joint product and by-product are given hereunder:
ExamplesSuppose the company’s object is to produce two products Product A and Product B side by side, as the initial process and input requirements of the two products are common, then these two will be called as joint products. Suppose a company basic aim is the production of Product A, but fortuitously B and C are produced, during the manufacturing process, then B and C are termed as the by-product, as the company has no intention to produce the same. ConclusionBoth joint products and by-products are produced with the same raw materials and manufacturing process, but they are different concerning the purpose.While the joint products are the primary results of operations, the by-product is a secondary outcome of the process. Which are two or more products produced simultaneously by the same process?Joint products are the products which are produced simultaneously, with the same raw material and process, and requires further processing to become a finished product after they get separated.
Which rate is suitable where two or more products are produced?A joint cost is the result of producing two or more different products from a single cost factor. It may be defined as the cost incurred to produce two or more different products by processing one or more raw materials through a common production process or a series of production processes.
What do you mean by joint products?Joint products are two or more products that are generated within a single production process. They can't be produced separately and will incur undifferentiated joint costs. Take charge of your invoicing with SumUp Invoices. Joint products can't be separated until a specific 'split-off point' or 'separation point'.
What are joint products give two examples?Examples. The processing of crude oil can result in the joint products naphtha, gasoline, jet fuel, kerosene, diesel, heavy fuel oil and asphalt, as well as other petrochemical derivatives. The refinery process has variable proportions depending on the distilling temperatures and cracking intensity.
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