ACCA MA · Chapter 8 · Question 9 of 12
What is the main difference between a joint product and a by-product?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) A by-product has a relatively low sales value compared with the main products, whereas joint products each have significant sales value
Explanation
Joint products and by-products both come from the same process. Joint products each have significant sales value, while a by-product is produced incidentally and has relatively small sales value. A by-product does have some value; output with no value would be waste.
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