Create an account
a secondary product recovered in the course of manufacturing a primary product during a joint process
activities or variables that invoke service costs. generally, it is desirable to use casual factors as the basis for allocating service costs
constant gross margin percentage method
a joint cost allocation method that maintains the same gross margin percentage for each product
a method that allocates service costs directly to producing departments. This method ignores any interactions that may exist among service departments.
hypothetical sales value
an approximation of the sales value of a joint product at split off. It is found by subtracting all separable or further processing costs from the eventual market value
two or more products, having relatively substantial value, that are produced simultaneously by the process up to a split off point
net realizable value method
a method of allocating joint production costs to the joint products based on their proportionate share of eventual revenue less further processing costs
physical units method
a method of allocating join production costs based on each product's share of total units
a unit within an organization responsible for producing the products or services that are sold to customers.
a method that simultaneously allocates service costs to all user departments. It gives full consideration to interactions among service departments
sales value at split off method
a method of allocating joint production costs based on each product's share of revenue realized at the split off point.
sequential or step method
a method that allocates service costs to user departments in a sequential manner. It gives partial consideration to interactions among service departments.
a unit within an organization that provides essential support services for producing departments
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together