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

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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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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.

I agree with the Answer added by: frank mwansa  ACCOUNTING LECTURER 29 days ago