CA Inter P4 · Chapter 10 · Question 6 of 8
The split-off point is the point in a joint production process at which:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The joint products become separately identifiable
Explanation
The split-off point is the stage at which joint products emerge as separately identifiable products. Costs incurred before this point are joint costs; costs after it are separable (further processing) costs traceable to individual products.
More Joint Products and By-Products MCQs
- Q8Under the survey (point value) method of apportioning joint costs, the basis of apportionment is:
- Q1Joint costs of ₹4,80,000 are incurred up to the split-off point, producing 6,000 kg of product P and 10,000 kg of product Q. Using the…
- Q2Using the same output (P 6,000 kg, Q 10,000 kg) and joint cost of ₹4,80,000, P can be sold at the split-off point for ₹50 per kg and Q for…
- Q3Joint costs of ₹3,90,000 produce 6,000 kg of P and 10,000 kg of Q, neither of which is saleable at split-off. After further processing, P…
- Q4A by-product is sold for ₹1,20,000. Selling expenses are 10% of sales, the expected profit margin is 20% of sales and post-separation…