Joint Product Cost
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.
Quantitative or Physical Unit Method–Allocating Joint Product Cost: Learning Objectives: Explain quantitative or physical unit method of joint cost allocation. Quantitative or physical unit method attempts to distribute the total joint cost on the basis of some unit of measurement, such as pounds,
Joint Product Cost Definition: A joint cost may be defined as that cost which arises from the common processing or manufacturing of products produced from a common raw material. Whenever two or more different products are created from a single cost factor, a joint