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Management Joint products are not identifiable as separate products until a certain point or stage of production is complete. This stage is known as split

Management Joint products are not identifiable as separate products until a certain point or stage of production is complete. This stage is known as split off point. Cost incurred prior to the split off point are referred to as joint costs. Costs incurred after this stage are referred to as separate or subsequent costs. Accounting of joint products implies the assignment of a portion of the joint cost to each of the joint product. Unless the joint costs are properly and reasonably apportioned to different joint products produced, the cost of joint products will vary considerably and this will affect valuation of inventory, pricing of products and profit or loss on sale of different products.

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