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
Joint Products Definition: Two or more items that are produced from a common input are called joint products.
By Products and Joint Products: After studying this chapter you should be able to: Many industrial concerns are confronted with the difficult and often rather complicated problem of assigning costs to their by-products and joint products. Chemical companies, coke manufacturers, refineries, flour mills, coal
Definition and Explanation of Process Costing System: Cost accumulation procedures used by manufacturing concerns are classified as either job order costing or process costing. The Job Order Costing System chapter deals with the procedures applicable to job order costing. It is important to understand