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

In cost accounting, the point in a joint production process at which the individual products first become separately identifiable is called the:

The split-off point is where joint products first become separately identifiable in a common process. Costs incurred until this point are joint costs that must be apportioned among the products, while costs after it are separable and traced directly to individual products.

  1. ABreak-even point
  2. BSplit-off pointCorrect
  3. CReorder point
  4. DCut-off point

Explanation

Joint products are produced together from a common process and become separately identifiable only at the split-off point. Costs incurred up to that point are joint costs. The other terms relate to CVP analysis, inventory control and accounting periods respectively.

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