By-Products

Common Costs
Common costs refer to the expenses shared by multiple products, processes, or departments before any differentiation occurs. These can often be fixed costs and are important in allocations to determine accurate product costing.
Main Product
The primary product that results from a manufacturing or production process, holding the greatest economic significance compared to any by-products or joint products.
Process Costing
A costing system applied to production carried out by a series of chemical or operational stages or processes. Characterized by the accumulation of costs for the whole production process and computation of average unit costs at each stage.
Separation Point (Split-Off Point)
In process costing, the separation point, also known as the split-off point, is where by-products or joint products emerge and begin their independent processing paths.
Split-off Point
The split-off point refers to the stage in the production process where jointly produced products become separately identifiable and can be sold or further processed.

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