How do you differentiate between product costing and joint product costing?

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Posted by:
Vinod Jetley
27-February-2015

Accounting Cost Accounting Financial Accounting Finance Financial Statements

Question ajoutée par Mohamed Hakeem Meerashahib , Branch Manager , Sri Lanka State Trading (General) Corporation
Date de publication: 2016/04/01

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par Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thanks for invitation

A joint product is regarded as an important saleable item and so it should be separately costed. The profitability of each joint product should be assessed in the cost accounts.

A by product is not important as a saleable item and whatever revenue it earns is a 'bonus' for the organisation. Because of their relative insignificance, by -products are not separately costed.

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par Mohammad Ashi CFA CMA , Group Finance Manager , QOAD

agree with answers

thank you

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par Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

The differentiate by product costing joint products and by-product as- 1.Jount products are of equal importance where as by-product are of small economic value. 2.Joint products are produced simultaneously but the by-product are produced incidentally in addition to the main products.

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