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CA Intermediate · Cost and Management Accounting · Joint Products and By Products

In a joint-product process, costs incurred on a product after the split-off point, for example to refine or finish it, are known as:

Costs incurred after the split-off point on a specific product are called separable costs. Joint costs are incurred only up to the split-off point, where products become separately identifiable. Separable costs are traced directly to the product concerned and are not shared among the joint products.

  1. AJoint costs
  2. BSeparable costsCorrect
  3. CCommon apportioned costs
  4. DPre-separation costs

Explanation

Costs incurred up to the split-off point are joint costs. Costs incurred after that point on an individual product are separable (further processing) costs and are charged directly to that product. They are not apportioned among the other joint products.

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