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.
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.
