Prime costs (direct labor and overhead) have nothing to do with distinguishing between joint products and by-products.
Historical costs have nothing to do with distinguishing between joint products and by-products.
By-products are the low-value products that occur naturally in the process of producing higher value products. They are, in a sense, accidental results of the production process. By-products are sold for whatever their market value might be, and that market value is very little. If the market value were high, the by-product would instead be a joint product. Therefore, the distinction between joint products and by-products is largely dependent on their market value.
Salvage value is the estimated value of a fixed asset at the end of its useful life. Salvage value is not an issue with by-products, because by-products are produced in the production process. They are not fixed assets.
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