Top 2 Methods of By-Products Costing

The following points highlight the top two methods of accounting of by-products. The methods are: 1. Non-Cost or Sales Value Methods 2. Cost Methods. 1. Non-Cost or Sales Value Methods: (a) Other Income or Miscellaneous Income Method: Accounting of by-products by this method is also inaccurate as there is a time lag between the sales and production. There is also [...]