In the joint production process, a by-product refers to an additional product that is produced alongside the main or primary products. By-products are typically unintended or secondary products that...
Category: Managerial Accounting
Joint costs are the costs incurred in a joint manufacturing process up to the split-off point, where two or more products are simultaneously produced from a common set of inputs or resources. These...
The split-off point in manufacturing refers to the stage in a joint manufacturing process where the joint products become separate and identifiable units. It is the point at which two or more...
Joint costs are allocated among the joint products using various cost allocation methods. The choice of allocation method depends on factors such as the nature of the products, industry practices,...
What is the Physical Units Method of Allocating Joint Costs?
The physical units method, also known as the physical quantity method, is a cost allocation method used to allocate joint costs among the joint products based on the physical quantities produced. It...
What is the Weighted Average Method of Allocating Joint Costs?
The weighted average method, also known as the weighted average cost allocation method, is a cost allocation method used to allocate joint costs among the joint products based on their relative...