Joint Product vs. By-Product: What's the Difference?
Edited by Sawaira Riaz || By Sumera Saeed || Published on November 13, 2023
Joint products are multiple valuable products produced simultaneously from a single process, while by-products are secondary products derived from producing the main product.
Key Differences
A joint product refers to any of multiple primary products that are produced concurrently using the same input or process. Such products often have similar value and importance in the market, making neither superior nor inferior to the other.
Sumera Saeed
Nov 13, 2023
Conversely, a by-product is a secondary outcome of producing the main product. Unlike joint products, by-products typically have less economic value compared to the main product. While joint products share a co-equal status, by-products are usually considered supplementary or incidental.
Sumera Saeed
Nov 13, 2023
When considering joint products, it's essential to understand that each product generated in the process holds its weight in terms of value. For example, in petroleum refining, gasoline and diesel can be viewed as joint products since they both have significant value and are produced concurrently.
Sumera Saeed
Nov 13, 2023
By-products, on the other hand, are often unintended results from the primary production process. For instance, while producing wheat flour, wheat bran emerges as a by-product. It has value but is not the primary focus of the production process.
Janet White
Nov 13, 2023
In essence, while joint products arise from a production process with equal emphasis and value, by-products are secondary results with often lesser economic significance.
Aimie Carlson
Nov 13, 2023
ADVERTISEMENT
Comparison Chart
Economic Value
Comparable to other joint products
Generally lower than the main product
Sumera Saeed
Nov 13, 2023
Market Importance
Holds significant market value
Might have limited market value
Sara Rehman
Nov 13, 2023
Volume
Produced in larger volumes
Usually produced in smaller volumes compared to the main product
Sumera Saeed
Nov 13, 2023
ADVERTISEMENT
Joint Product and By-Product Definitions
Joint Product
Outputs with similar market value.
In livestock, meat and leather are considered joint products.
Sawaira Riaz
Oct 31, 2023
By-Product
Might have limited market application.
Slag is a by-product of metal smelting.
Sara Rehman
Oct 31, 2023
Joint Product
Equal emphasis in production.
In metal smelting, different metals can be joint products.
Harlon Moss
Oct 31, 2023
By-Product
Often unintentional result.
Glycerin is a by-product of soap making.
Sumera Saeed
Oct 31, 2023
Joint Product
Products produced concurrently in a single process.
Gasoline and diesel are joint products of refining.
Sumera Saeed
Oct 31, 2023
ADVERTISEMENT
By-Product
Secondary outcome of the main production.
Wheat bran is a by-product of flour milling.
Sawaira Riaz
Oct 31, 2023
Joint Product
Results from common raw material use.
Cracking crude oil yields several joint products.
Sara Rehman
Oct 31, 2023
By-Product
Has economic value but less than the main product.
Molasses emerges as a by-product in sugar production.
Sumera Saeed
Oct 31, 2023
Joint Product
Neither product is secondary.
The production of cream and skimmed milk are joint products.
Sumera Saeed
Oct 31, 2023
By-Product
Not the primary focus of production.
In cheese production, whey is a by-product.
Janet White
Oct 31, 2023
FAQs
Why are joint products important in cost accounting?
Allocating costs between joint products is essential to determine the profitability and pricing of each product.
Janet White
Nov 13, 2023
What is a common example of joint products?
Crude oil refining often results in joint products like gasoline, diesel, and jet fuel.
Sumera Saeed
Nov 13, 2023
How are costs allocated to joint products?
Common methods include the sales value method, physical measure method (e.g., weight), and other consistent and rational bases.
Sumera Saeed
Nov 13, 2023
How does joint product differ from by-product?
While both are outputs from a production process, joint products hold relatively similar value, whereas by-products hold less value compared to the primary product.
Sawaira Riaz
Nov 13, 2023
Can joint products exist without by-products?
Yes, it's possible to have joint products without any by-products.
Sumera Saeed
Nov 13, 2023
Is there a primary product in joint production?
No, in joint production, each product holds significant value, and none is typically considered primary or secondary.
Harlon Moss
Nov 13, 2023
Can by-products be further processed?
Yes, many by-products undergo further processing to enhance their value or utility.
Sumera Saeed
Nov 13, 2023
What is a by-product?
A by-product is a secondary output derived from producing the main product; it has lesser value compared to the primary product.
Sumera Saeed
Nov 13, 2023
Why are by-products important for sustainability?
Utilizing by-products reduces waste, promotes resource efficiency, and often leads to more sustainable production practices.
Harlon Moss
Nov 13, 2023
What is a joint product?
A joint product refers to multiple end products that are produced simultaneously from a single input or process.
Sumera Saeed
Nov 13, 2023
Can a product be both a joint product and a by-product?
No, a product is either classified as a joint product or a by-product based on its relative value and production context.
Aimie Carlson
Nov 13, 2023
Why are joint products relevant in decision-making?
Understanding the costs and revenues associated with joint products helps in making decisions about production levels, product mix, and pricing.
Sara Rehman
Nov 13, 2023
Is joint production more common in certain industries?
Yes, industries like agriculture, petrochemicals, and meat processing often have joint products.
Sara Rehman
Nov 13, 2023
Is a by-product always of lesser value?
Typically, yes. By-products are usually of lesser economic value compared to the main product.
Janet White
Nov 13, 2023
Are by-products only found in manufacturing?
No, by-products can be found in various sectors, including services, agriculture, and more.
Sumera Saeed
Nov 13, 2023
How are by-products treated in accounting?
By-products can be accounted for by deducting their sales value from the cost of the main product, or they can be treated as additional revenue.
Sumera Saeed
Nov 13, 2023
Are by-products always sellable?
Not necessarily. While many by-products find a market, some might be disposed of if they lack economic value or utility.
Harlon Moss
Nov 13, 2023
What's a common example of a by-product?
In the lumber industry, sawdust is a by-product of producing lumber.
Sara Rehman
Nov 13, 2023
Can a by-product become a primary product?
Yes, if market conditions change or further processing enhances its value, a by-product can become more valuable or even a primary product.
Sumera Saeed
Nov 13, 2023
How do companies determine the value of a by-product?
The value is typically determined by market prices, potential uses, or costs saved from not having to dispose of the by-product.
Sumera Saeed
Nov 13, 2023
About Author
Written by
Sumera SaeedSumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
Edited by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.
