Joint cost is related to common operation costs which are incurred before a point called, split-off point, where joint products are recognized as individual products. It can also be well-defined as the cost to operate joint-product processes including the disposal of waste.
Difficulties / Problems in Costing by Products and Joint Products: By products and joint products are difficult to cost because a true joint cost is indivisible. For example, an ore might contain both lead and Zink. In the raw state, these minerals are joint
Characteristics of Joint Products and Joint Cost: Many products or services are linked together by physical relationships which necessitate simultaneous production. To the point of split-off or to the point where these several products emerge as individual units, the cost of the products forms