The products with a greater value, commonly called the joint products, is usually produced in greater quantities
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The products with a greater value, commonly called the joint products, is usually produced in greater quantities than the by-products.
- The split-off point is defined as the point at which these several products emerge as individual units.
- The term by-product is generally used to denote a product of relatively small total value that is produced simultaneously with a product of greater total value.
- A joint cost can be defined as the cost that arises from the simultaneous processing or manufacturing of products from the same process.
- If no further processing is required to make the joint product marketable, they may be accounted for by debiting an inventory account.
- Main products are produced simultaneously by a common process or series of processes, with each product possessing a more than nominal value in the form in which it is produced.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ
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