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.
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.
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.
