Distinguish between Joint Products and by-products.

Management Accounting Block Revision Mock Exams

Joint Products: refers to two or more products using the same process but separate in the course of processing; each has a sufficiently high reliable value to merit recognition as a main product. e.g. milk and butter

By Products: Is incidental output from the material used to manufacture the main products. They have relatively low realization value when compared to the sale value of the main product e.g. Sugar and Molasses.

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