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Answer Posted / rajesh
Co-products/By-products are products which are produced
alongwith the finished product.They are products which are
not intentionally produced but which we get when we are
producing the finished product (which is being produced
intentionally).
In some industries the products which are produced alongwith
the finished product do not have much value.These products
are By-products and the company would get a very small value
for these products as compared to the actual finished
products in the market.In such cases tracking/financial
details for such materials don't hold importance for the
company.
In some other industries the products which are produced
alongwith the finished product have considerable value
(sometimes 15 - 20% of the finished product).These products
are Co-products and get a good value for the company when
they are sold in the market.
Co-products are considered more important as compared to
By-products.We have to maintain a lot more data for
Co-products as compared to By-products.
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