By products are outputs from a joint process that are relatively minor in quantity and/or value.

Related MCQs

• In Units basis, Common costs are apportioned between joint products on the basis of the total number of units produced. The cost per unit is the same for all the joint products. (This is also described as the physical quantities basis).
• Joint products are two or more products generated simultaneously, by a single manufacturing process using common input, and being substantially equal in value.
• Joint Cost are ………………to individual joint products.
• In order to calculate a cost for each joint product, the common costs must be ________ between the joint products.
• The point at which joint products and by-products become separately identifiable is known as:
• The relative sales value method is the most widely used method of apportioning joint costs because (ignoring the effect of further processing costs) it assumes that all products achieve the same profit margin.
• The task that sits at the heart of process costing is always to allocate the costs collected on the debit side of the account to the possible outputs (good output, closing WIP and lost units) on the credit side.
• Which of the methods of apportionment is normally used for apportioning common costs between joint products?
• If normal loss has a scrap value the company is able to recover some of the input costs to the process. The scrap value reduces the cost of the process.
• In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.