You are the lead product design manager at a Process manufacturing plant.
You are building a formula that produces egg yolks as a by-product. This by-product is added back into inventory at standard cost and can be used in other production batches.
You need to select the by-product cost allocation.
Which cost allocation type should you use?
The by-product cost for the egg yolks should be allocated based on quantity. This allocation type, 'Per quantity', applies burden to the cost of the batch based on the quantity of the by-product reported as finished. This allows for scalability of cost depending on the amount produced, ensuring that the cost is accurately reflected in inventory and can be used in subsequent production batches.
B. Per qty is correct here as per description in the link. Per quantity ─ Burden is applied to the cost of the batch based on the quantity reported as finished. In this case, the burden amount is scaled up and down depending on the ratio of the report as finished quantity of the by-product in the batch order and the per series for the by-product on the formula.
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-co-products-and-by-products Here it says there's no Recycle option....
https://docs.microsoft.com/en-us/dynamicsax-2012//co-products-form?redirectedfrom=MSDN https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/about-co-products-and-by-products Must be None, I think
https://docs.microsoft.com/en-us/dynamicsax-2012/appuser-itpro/set-up-recycled-products-in-formulas The option is there and is used to have the same standard cost as the main product.
The option recycled appears on the co-products form, I don't know why they don't put it in the link you show.
I think C is correct: https://gfeaxblog.wordpress.com/2018/10/28/msdyn365fo-formula-co-product-by-product-batch-attributes-batch-orders-sponge-cake-example/