CMA Intermediate · Cost Accounting · Process Costing
In process costing, the point in the production process at which joint products become separately identifiable is called the:
The split-off point is where joint products first become separately identifiable. Costs incurred up to that point are joint costs shared among the products, while costs after it are separable or further processing costs. The other terms belong to different areas of costing.
- ASplit-off pointCorrect
- BBreak-even point
- CRe-order level
- DCut-off point
Explanation
Joint products emerge together from a common process and become separately identifiable only at the split-off point. Costs incurred up to this point are joint costs, which must be apportioned among the products. The other terms relate to CVP analysis, inventory control and accounting period cut-off.
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