joint costs

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In process costing, the costs incurred prior to the separation point after which the joint products are treated individually. The joint costs are therefore common to the joint products; in order to determine individual product costs, the joint costs need to be apportioned between the joint products. The joint costs may be apportioned on the basis of the number of units, weights, or volumes of each product or their sales values at the separation point. See also common costs.

Subjects: Accounting.

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