Methods For Valuation Of By-Product.

Q86. What are various methods for valuation of By-Product?
Ans. Methods for valuation of By-Product:

  1. Market value or realization value (sales realization- separate expenses).
  2.  Standard cost which is predetermined (it is adopted where valuation is not possible).
  3. Comparative price of same or similar goods in market.
  4.  Reuse price when it is used in the factory itself.

Joint Product, Co- Product and By-Product.

Q83. What do you mean by Joint Product, Co- Product and By-Product?
Ans.

Joint Product: Joint Product represents two or more products separated intercourse of same processing operation usually requiring further processing, each product being in such proportion that no single product can be designed as a major product. In other words, two or more products of equal importance, produced simultaneously from the same process are known as joint product. Read More …