meaning of by products and intermediate products

[Guest]

Hi All,

Can anyone explain in detailed on difference between by-products and intermediate products with an example please?

[umesh subramanyam]

BY-product is a product that is not intended to manufacture but emerges during the process of manufacturing a particular goods. Essentially by-product is a secondary and sometimes unexpected consequence and is made during the manufacture of something else.

Whereas an intermediate goods is a goods that is manufactured with a purpose, which can be either used for the manufacture of an intended final product as such or sold as a final product itself. If you use it,, within your own factory, in the manufacture of a final product using this intermediate product it is called captive consumption.

[Guest]

Thank you very much

AI Summary

By-product: unintended secondary product arising during manufacture; distinction from intermediate goods affects captive consumption and saleability. By-product denotes a secondary product produced incidentally during manufacture of a principal article and is not the primary object of production. Intermediate goods are manufactured with an intended purpose-either to serve in the manufacture of a final product or to be sold as such-and their use within the same factory to make the final product is termed captive consumption.