By-Products Costing meaning & Features

When two or more products are simultaneously produced in a process and one of them has comparatively high value and other significantly low value, the former is main product and the later is by-product.The following are the main features of by-products

There may be one or more by-product in addition to the main product from the same process.
By-products are relatively small value.
They may be sold and as when they are obtained.
They may also further processed to enhance their value.
Main product is produced in larger quantities and the by-product are usually low in quantity and value.

There is always the possibility that what is considered as a by-product one stage may become a joint product or even the main product at a later date due to the change in market conditions.