Byproduct definition — AccountingTools (2024)

FAQs

Byproduct definition — AccountingTools? ›

A byproduct is an incidental product that is created by a manufacturing process that creates multiple products. The other products created by the process are considered to be the primary output of the system.

Meaning of by-product in English

something that is produced as a result of making something else, or something unexpected that happens as a result of something: Buttermilk is a by-product of making butter.

Sawdust is a byproduct of the lumber industry, and feathers are a byproduct of poultry processing. In each of these cases, the byproduct is important and useful, but secondary to the initial product.

By-products, sometimes called byproducts, are secondary products that result incidentally from the manufacturing of a main product. Create professional invoices for free with SumUp Invoices. Whilst by-products are often not intended products, they're an inevitable result of many production processes.

A by-product can be useful and marketable or it can be considered waste: for example, bran, which is a byproduct of the milling of wheat into refined flour, is sometimes composted or burned for disposal, but in other cases, it can be used as a nutritious ingredient in human food or animal feed.

What are byproducts? Byproducts are the low-value products that occur naturally in the process of producing higher value products. They are, in a sense, accidental results of the production process.

In this example, the cost allocated to the main products (gasoline, diesel, and jet fuel) and byproducts (asphalt, lubricants, and petroleum co*ke) reflects their proportion of the total sales value. This allocation helps determine the production cost of each product more accurately.

The two methods to account for by-products are as follows. 1) The production method recognizes by-products in the financial statements at the time production is completed. 2) The sales method delays recognition of by-products until the time of sale.

The production method recognizes the byproduct in the financial statements when it's produced. The production method deducts the byproduct revenue from cost of sales at the time of production.

How is by-products treated in cost accounting? ›

The sales value of the by-products may be credited to the Costing Profit and Loss Account and no credit be given in the Cost Accounts. The credit to the Costing Profit and Loss Account here is treated either as miscellaneous income or as additional sales revenue.

Both are orthographically correct. Major dictionaries list the word as by-product, and some dictionaries list byproduct as an alternative form.

a secondary or incidental product, as in a process of manufacture. the result of another action, often unforeseen or unintended.

In many cases, byproducts can be used as inputs for other industries, contributing to the efficient use of resources and minimizing waste. By recognizing the value of byproducts, companies can potentially lower their overall production costs by selling these byproducts and generating additional revenue.

By-product is a sub-material generated at the time of production. Example: I produced a steel plate and any leftovers that have generated a sub-item that can be used again or even be in the process of selling a product.

Cellular respiration converts oxygen and glucose into water and carbon dioxide. Water and carbon dioxide are by- products and ATP is energy that is transformed from the process.

Byproducts are generally secondary products derived from primary agro-food production processes and represent an interesting and cheaper source of potentially functional ingredients, such as peptides, carotenoids, and phenolic compounds, thus promoting a circular economy concept.

consequence offshoot repercussion result. Weak matches. aftereffect fallout side effect spinoff.

Answer and Explanation:

A by-product is a product created along with the main product whose sales value does not cover its cost of production.