A by-product is a secondary product derived from a manufacturing process or chemical reaction, often with some economic value.
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.
In process costing, the costs incurred prior to the separation point after which the joint products are treated individually. Joint costs are therefore common to the joint products and need to be apportioned to determine individual product costs.
The output of a process in which there is more than one product and all the products have similar or equal economic importance.
The primary product that results from a manufacturing or production process, holding the greatest economic significance compared to any by-products or joint products.
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.
Sales values represent the prices charged for items when they are sold. Additionally, in accounting, they serve as a method of apportioning joint costs between joint products in process costing models.
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.
