Joint Cost and Products Homework Help

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Get Joint Cost and Products Homework Help and Learn about the Topic

Joint cost and products are interesting areas to explore. If you study them seriously you will definitely like them. Understanding of the topic of joint costs and products will help you understand the other areas of cost accounting. With our joint cost and products homework help you will get answer of every question of this topic.

Concept:

Joint products are two or more products which are generated from asingle manufacturing process. These products cannot be produced separately. All the outputs of single production process are not considered joint products. Only those products which have significant value are called joint products. This differentiation is needed in the case of cost accounting.

Joint cost is the collection of common costs when it is not possible to separate the products from each other. These costs benefit more than one product.

A Few Examples:

Many industries are associated with the work of producing joint products.

  • Different types of woods obtained from the same tree
  • Production of different milk products such as cheese, butter, cream from milk
  • Production of petrol, diesel, gasoline, lubricants from crude oil etc.
  • The chloralkali process is one of the basic Chemical processes. In this process, sodium, hydrogen, hydroxide, chorine etc. are created.

Benefits of Joint Costs:

  • They are really beneficial because the expenditure benefits both separate departments of business.
  • They are seen as useful tools for motivating budget cooperation among different departments of business.

It is not possible to discuss about every single aspect of these areas in this page. So, we suggest you to check joint cost and products homework help from myhomeworkhelp.com for details.

Difference between Joint Costs and Common Costs:

Both of them are considered to be same by many people. But they are actually different from each other.

  • Joint products arise when different outputs are manufactured from one single raw material. On the other hand, common products do not use one single raw material to create products.
  • While joint costs are influenced by common production process and raw materials, common costs are decided by management.
  • Joint costs face more difficulties and complexities in cost accounting than common costs.
  • Joint costs are all about common products. But common costs can be common to responsibilities, processes, sales territories, functions, time duration, customers etc. as well.

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