Post 2 - Katrina Rowsey 29 Apr 11 9:23 PM MST Discussion 6...

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Unformatted text preview: Katrina Rowsey 29 Apr 11 9:23 PM MST Discussion 6 A product that results from a joint process and that had a sales value is classified as a joint product, a by-product, and scrap. Joints products are the primary outputs of a joint process. Joint products have substantial revenue-generating ability and, as such, provide the financial motive for entering into the production process. In contrast, by-product and scrap are incidental outputs of a joint process. Both are salable, with by-products having a higher sales value than scrap. However, the sales values of these products alone would not be sufficient for management to undertake the joint process. A final residual output from a joint process is waste, which has no sales value. The expense incurred in waste disposal may exceed its production costs in some industries. However, many co. have learned either to minimize their production waste by changing their processing techniques or to reclassify waste as by-product or scrap by finding a use that generates some...
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