When the by-products are of considerable total value

Where by-products are of
considerable total value, they may be regarded as joint products rather than as byproducts.
To determine exact cost of by-products the costs incurred upto the point of
separation, should be apportioned over by-products and joint products by using a logical
basis. In this case, the joint costs may be divided over joint products and by-products by
using relative market values ; physical output method (at the point of split off) or ultimate
selling prices (if sold).