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Answer Posted / girish pawar
The ANSWER 1 by Rajesh is correct ,
I want to add some more example with this
Example of co product is During machining process of the
casing of pump , the brass shavings are produced . Theses
brass shvings are again sold back to refiner company who
sold you the brass ignots initially for forging or casting
process.
So Brass shavings can be a co product , as it is valued and
costed for the company .
And the example for the BY-product is the COOLING OIL
,which is used to cool the cutting blades of tool , which is
collected again and used once or twice again and set for
the proper disposal , but not sold outside , that is you
need not to settle cost , and no credits for sale .
So it can be by-product , it is valued but not costed,
Both have non-zero inventory valuation .
| Is This Answer Correct ? | 4 Yes | 2 No |
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