Joint cost allocation methods

The allocation of the joint production cost incurred up to the split off point can be made by: The quantitative or physical unit method based on some physical measurement unit such as weight. linear measure or volume. The weighted average method, based on predetermined standard or index of production. The market or sales value method … Read more

By-products

Definition and Explanation The term by-products is generally used to denote one or more products of relatively small total value that are produced simultaneously with a product of greater total value. The product with the greater value, commonly called the “main product”, is usually produced in greater quantities than the by-products. Ordinarily, the manufacturer has … Read more