Questions:
1. Define ‘by-product' and ‘joint products'. What is the difference between them? Give examples.
2. State the main objectives of analysis of costs and accounting of joint and by-products.
3. What is the basic cost accounting problem in dealing with joint products? Mention various methods of accounting for joint products.
4. In making a product, a valuable by-product is made. This by-product can be sold in the form in which it is produced or can be subjected to further processing, after which it is saleable at a higher price. Explain how you would present information to management to show the best way of dealing with the by-product.