Joint Products and By-products

In a common manufacturing process if the output is more than one type, the resulting products are called a) Joint products b) By products There is no precise criterion to distinguish between joint products and by-products. It could be made based on several factors like the company’s policy, sales value, market demand, profitability etc. The […]

Product Costing – Methods

One of the primary areas of management accounting is computing the cost of products manufactured / services provided. The following are two broad methods used for product cost computation: a) Job Costing b) Process Costing Job costing is used in industries which make products for customer specific orders. Each job is separate and independent with […]