Chapter 16: Joint Products and Byproducts Flashcards
Joint Costs
costs of a production process that yields multiple main products simultaneously
product
output that can be sold at full product cost plus profit, or enables the company to avoid purchasing direct materials.
Main Product
when multiple products are yielded, the one with the highest sales value is the main product. When 2 products have similar sales value, they are joint products
Joint products
when multiple products are yielded and 2 or more products have similar sales value
Toxic Waste
negative revenue when the costs of reclamation and remediation are considered
life-cycle costs
Costs of recovering or disposing toxic emissions; added to joint production costs
Split off Point
in the joint cost process, where two or main products become separately identifiable
separable costs
full product costs of processing incurred by each identifiable product beyond the splitoff point
