COST ALLOCATION: JOINT PRODUCTS AND BYPRODUCTS
Give two examples of industries in which joint costs are found. For each example, what
are the individual products at the splitoff point?
What is a joint cost? What is a separable cost?
Distinguish between a joint product and a byproduct.
Why might the number of products in a joint-cost situation differ from the number of
outputs? Give an example.
Provide three reasons for allocating joint costs to individual products or services.