Agricultural product industries,
chemical process industries, sugar industries, and extractive industries are some of the
industries where two or more products of equal or unequal importance are produced either
simultaneously or in the course of processing operation of a main product. In all such
industries, the management is faced with the problems such as, valuation of inventory,pricing of product and income determination, problem of taking decision in matters of
further processing of by-products and/or joint products after a certain stage etc. In fact the
various problems relate to (i) apportionment of common costs incurred for various
products and (ii) aspects other than mere apportionment of costs incurred upto the point
of separation. Before taking up the above problems, we first define the various necessary
concepts.
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