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13 Cards in this Set
- Front
- Back
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Joint Costs
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Costs of processing joint products prior to the split-off point.
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Joint Process
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Simultaneously converts a common input into several outputs.
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By-Product
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The output from a joint-production process that is minor in quantity and/or NRV when compared to the main products.
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Constant Gross Margin Percentage Method
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Allocates joints costs to products in such a way that the gross margin percentages as a percent of revenue are the same for each joint product.
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Final Product
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Ready for sale without further processing.
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Intermediate Product
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Requires further processing before sale.
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Joint Products
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A number of products are produced from a single raw material input.
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Main Product
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A joint output that generates a significant portion of the net realizable value (NRV) from the process.
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Split-Off Point
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The stage of processing where joint products are separated.
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Physical-Measures (or Quantities) Method
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Joint costs are allocated based on a proportional measure (weight, volume, etc.) of the joint products at the split-off point.
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Net Realizable Value (NRV)
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The measure of a product's contribution to profit after the split-off point and is computed as sales revenue minus additional processing costs.
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Net Realizable Value (NRV) Method
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Allocates joint costs based on the NRV of each main product at the split-off point.
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Relative Sales Value at Split-Off Method
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Allocates joint costs based on the relative sales values of the joint products at their split-off point.
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