What are joint products?
What are joint products?
What are Joint Products? Joint products are multiple products generated by a single production process at the same time. These products incur undifferentiated joint costs until a split-off point, after which each product incurs separate processing.May 9, 2017
What is joint products in agriculture?
Joint products are two or more outputs other than by-products, that are generated from a single production process that uses common inputs. ... Few examples of joint products are: Processing of crude oil to obtain gasoline, diesel, asphalt, jet fuel and lubricants etc. Production of butter, cheese and cream from milk.Sep 29, 2020
What is the example of joint products?
In short, we can say, when two or more products of equal importance are simultaneously produced, then they are known as joint products. Example: In oil industry kerosene, gasoline, fuel oil, lubricants etc. are all produced from the same product, crude petroleum.
What are joint products and by-products?
When the production of two or more products of similar value, are made together with same input and process, is called joint product. The term by-product means a product which is incidentally produced, during the processing operation of another product. ... Economic value of by-product is lower than the main product.Jun 12, 2017
What do by products mean?
Definition of by-product
1 : something produced in a usually industrial or biological process in addition to the principal product Sulfured molasses is a by-product of sugar refining.—
What do you mean by co product?
Co-products are desirable secondary goods that are generated during the manufacturing process and can be sold or reused profitably. They might also be products that are usually manufactured together or sequentially because of product or process similarities.Nov 29, 2021
What is a joint products in economics?
In Economics, joint product is a product that results jointly with other products from processing a common input; this common process is also called joint production. A joint product can be the output of a process with fixed or variable proportions.
What is joint cost economics?
Definition: Joint costs are costs that are incurred from buying or producing two products at the same time. In cost accounting terms, joint costs have the same cost object.
What is joint and product in cost accounting?
A joint cost is a cost that benefits more than one product, while a by-product is a product that is a minor result of a production process and which has minor sales. ... Given the immateriality of by-product revenues and costs, byproduct accounting tends to be a minor issue.May 14, 2017
What is joint cost example?
A joint cost is a kind of common cost that occurs after a raw product, such as a sunflower crop, undergoes two separate production processes. For example, the cost of fertilizing and harvesting sunflowers qualifies as a common cost. ... Another example of joint costing is feeding both sheep and cattle.
What are byproducts of animals?
Animal by-products are commonly defined as parts of a slaughtered animal that are not directly consumed by humans. This includes fat, bones, and gelatin. The vast majority of this material is 'rendered' or processed to produce a ground meal which is used in the formulation of animal feed to improve protein levels.
What is product and main product?
The term “by product” is generally used to denote one or more products of relatively small total value that are produced simultaneously with a product of greater total value. The product with the greater value, commonly called the “main product“, is usually produced in greater quantities than the by products.
What are the characteristics of a joint product?
- Joint products are multiple products that result from a single process and the same materials. In general, the manufacturing will convert raw materials to finished product and wastage which does not have any economic value. In joint products process, there are multiple outputs produced at the same time, they have similar economic value.
What is a joint product in cost accounting?
- Joint Products. Joint products are two or more outputs having significant values that are generated from a single production process and that uses common inputs. In cost accounting, all of the outputs of a single process are not joint products, only those that have significant economic value are considered joint products.
Can a joint product be sold or further processed?
- Joint products may be sold or further processed but the management of a company will assess whether or not any additional work will result in a net incremental benefit. If the increase in value of the joint product from further processing exceeds the additional expenses needed to further process the product, it is beneficial to further process it.
What is a joinjoint product?
- 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.