The costing of combined and by products in the food industry

In an environment that the world enters in a globalization process economically and politically, it is obvious that the significance of the accounting function generating the numerical data to be shedded light on the processes of planning, auditing, and decision making, is increasing more and more. In developed countries, the businesses attach importance to obtain the required data for determining the production costs in order to increase the business efficiency and profitability when installing the accounting systems. On the other hand, the significance of these concepts are newly understood in our country. The managers in the industrial businesses turning into complex organization structure day by day, obtain the detailed data from accounting department. The most important source of these data in question is ?cost accounting?. The improvements in the cost finding are aimed at the determining of the product costs, because every business has to know the cost of its product in order to determine the price, value the inventory, and determine and evaluate the activity results. The determining of the product costs that has such a sensitive importance can be done easily in most of the production firms. However, some of the production firms produce more than one product that is intended to produce, because of the technological difficulties and the nature of the production method. The determination of the costs of these products produced from the same production inputs and in the same production process, is a special issue of cost accounting. In order to deal with this issue, many cost finding methods for combined products and by products are developed. These methods to be developed have to be selected by considering the quality of the firm?s product and production conditions. Otherwise, the selection of the method that is not feasible to the production type is going to decrease the probability of reflecting the reality of the founded costs of the product.