Die kostevraagstuk van die mede- en neweprodukte in die chemiese bedryf, met spesiale verwysing na die kousale verband tussen kosprys en produksie

Abstract

The chemical industry is a process industry where the changes are brought about by chemical reactions, a characteristic of which is that in addition to the main product, other products are jointly formed. This study endeavours to arrive at an economic justifiable cost price of each of these co- and byproducts, using the causal relationship between cost price and production. For this reason a normative cost concept is developed from a fundamental supposition on the causal relationship. After discussing the special properties of the chemical industry and the way in which the industry developed in South Africa, a discription is given of a few production processes used in South Africa a the method to arrive at a cost price based on the causal relationship~ The principles of a cost accounting procedure is next discussed, which gives the total production cost but not how this cost should be particularized to the different co- and by-products. Raw materials are processed up to a certain point before separate identifiable products form. The cost before this separation takes place, is common cost, whilst the cost after this point, is termed separable cost. The common cost cannot

be particularized to the products due to the lack of a causal relationship. It can only arbitrarily be allocated. Ways of allocating the common cost to the co- and by-products are discussed and some recommendations made. The separable cost can easily be particularize~ if the causal relationship is applied. Finally the nature of decisions and plans is discussed and their influence on the cost price of the products.