Split-off point
The split-off point is the stage in a joint production process at which individually identifiable separate products first emerge. Costs before it are joint costs; costs after it are separable and attributable to a single product.
FrameworkJoint product costing
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A dairy processes whole milk as a single joint process carrying €50,000 of shared cost. That cost is joint only until the split-off point, the stage at which cream and skimmed milk first emerge as distinguishable products. From that point on, each product carries its own separable cost — turning cream into butter, for instance — traceable to it alone.
Where it fits
SubjectCost AccountingAdvancedTopicJoint Products, By-Products & SpoilageAdvanced
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PracticeCORE
After the split-off point in a joint production process, the costs a firm incurs to refine Product X further are classified as:
Select an answer to check your understanding.