Koprodukte
Koprodukte, or co-products, are two or more products produced simultaneously from a single manufacturing process. They originate from the same input stream and are separable into distinct products at a split-off point. Co-products differ from by-products, which are secondary outputs of lower value relative to the main products.
Split-off point describes when the co-products become saleable. The joint costs incurred before split-off are allocated
Cost allocation methods include relative sales value at split-off, net realizable value (NRV) at split-off, or
Further processing may occur after split-off. Firms weigh incremental revenue from additional processing against the extra
Examples: In oil refining, crude produces gasoline, diesel, and jet fuel. In dairy, milk can yield cream
By-products are typically lower-value and may be treated differently in cost allocation, while co-products have substantial
Relevance: The concept informs cost accounting, inventory valuation, pricing, and profitability analysis in process industries.