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

Understanding By-Products vs. Intermediate Products in Central Excise: Key Differences Explained for Captive Consumption A user in a discussion forum inquired about the difference between by-products and intermediate products in the context of central excise. One respondent explained that a by-product is an unintended product that results from the manufacturing process of another good. In contrast, an intermediate product is intentionally produced to be used in the creation of a final product or sold as a final product itself. If an intermediate product is used within the same factory to produce a final product, it is referred to as captive consumption. The original inquirer expressed gratitude for the explanation.