Abstract: In some industries, the manufacture of a product causes the appearance of secondary products and / or waste and scrap. These latter types of product appear to be negligible, yet having a share in the cost of the main product.
Thus, this article aims not only to analyze the costs or profitability but also the decision making over time; decisions guiding the taking into account or not of the residual products in the calculation of the costs and cost. For this, we study the analytical treatment of waste and rejects that come from the production of palm kernel oil in a palm kernel oil factory and then analyze the profitability when the mill takes into account or not its residual products in the calculation of costs and cost price for us will allow us to assess the impact of the inclusion of residual products in the calculation of costs and cost price on the profitability of companies.
Keywords: Residual products, Cost of production and profitability
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