are obtained as joint products, in the processing of crude oil. The amount incurred up to the split-off point is termed as joint cost.Įxample: Common examples of the joint product are diesel, gasoline, lubricants, paraffin, etc. At this stage, either the products are sold directly or go for further processing, to turn out as finished product. There is a separation point called as a split-off point, from where the products are separated and identified. the management aims at producing all the products. The production of joint products is performed consciously, by the management of the respective organization, i.e. In joint products, when raw material is processed, it results in more than two products. Joint 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. Required to turn the joint products into finished product. The term by-product means a product which is incidentally produced, during the processing operation of another product.Įconomic value of by-product is lower than the main product. When the production of two or more products of similar value, are made together with same input and process, is called joint product. Have a glance at the article to know, other differences amidst the two concepts.
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. 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.
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