The products with a greater value, commonly called the joint products, is usually produced in greater quantities than the by-products.

1. The split-off point is defined as the point at which these several products emerge as individual units.
2. The term by-product is generally used to denote a product of relatively small total value that is produced simultaneously with a product of greater total value.
3. A joint cost can be defined as the cost that arises from the simultaneous processing or manufacturing of products from the same process.
4. If no further processing is required to make the joint product marketable, they may be accounted for by debiting an inventory account.
5. Main products are produced simultaneously by a common process or series of processes, with each product possessing a more than nominal value in the form in which it is produced.