Common Products, by-Products, Accounting and their Impact on Sales Revenue and Methods of Processing them as Additional Revenues for the Company in Addition to the Revenues of the Main Products

  • Khaleel Radhi Hasan Alzlzly, Taher Mohammed Abdalamer


There are some companies that produce many non-similar products at the same time by using one raw material (raw) in a single production process, called these products ( joint products ) .Consequently, this process entails costs called common costs, since many management decisions (pricing, selling, product cancellation, disposal) depend largely on the accuracy of cost allocation and measurement among these products. The joint process is called "spin-off products", which have very little value, where companies calculate the revenue of these by-products (spin-off) within the revenues of the industrial company and how to account for them and the methods used to calculate them . economic units mostly produce and sell more than one product from the products, there are economic units that use several production processes to produce various products, and some of these units use a single production process such as oil refining companies, which generate several products (gasoline, gas, oil,. ... etc.) from one supplier or one substance which is (crude oil).