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 among co-products for cost accounting and inventory valuation.

Cost allocation methods include relative sales value at split-off, net realizable value (NRV) at split-off, or physical units when market values are unreliable. The chosen method affects reported profitability and stock valuation.

Further processing may occur after split-off. Firms weigh incremental revenue from additional processing against the extra costs to decide whether to continue processing a co-product.

Examples: In oil refining, crude produces gasoline, diesel, and jet fuel. In dairy, milk can yield cream and skim milk. In sugar production, sugar and molasses can be produced from the same batch. In pulp and paper, pulp fibers and energy by-products are generated together.

By-products are typically lower-value and may be treated differently in cost allocation, while co-products have substantial value and are treated as primary outputs for accounting purposes.

Relevance: The concept informs cost accounting, inventory valuation, pricing, and profitability analysis in process industries.