Lilac Floor Mil
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|Lilac Flour Mills |
|Managerial Control and Accounting – II |
|Session-12 |
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Concepts to be known for analysis of the Case:
Joint Cost Basics:
Joint Costs: Joint costs are the costs of a production process that yields multiple products simulatenously. If we consider the distillation of coal, it yields coke, natural gas, and other products. The costs of this distillation are joint costs.
[pic]
Splitoff Point: Splitoff point is the juncture in a joint production process when two or more products become separately identifiable.
Separable Costs: Separable costs are all costs –manufacturing, marketing, distribution and so on- incurred beyond the splitoff point that are assignable to each of the specific products identified at the splitoff point.
Main Products: The term product here refers to any output that has a positive total sales value. Main product, in a joint distribution process, is the product that has
| |
|Lilac Flour Mills |
|Managerial Control and Accounting – II |
|Session-12 |
| |
| |
| |
| |
Concepts to be known for analysis of the Case:
Joint Cost Basics:
Joint Costs: Joint costs are the costs of a production process that yields multiple products simulatenously. If we consider the distillation of coal, it yields coke, natural gas, and other products. The costs of this distillation are joint costs.
[pic]
Splitoff Point: Splitoff point is the juncture in a joint production process when two or more products become separately identifiable.
Separable Costs: Separable costs are all costs –manufacturing, marketing, distribution and so on- incurred beyond the splitoff point that are assignable to each of the specific products identified at the splitoff point.
Main Products: The term product here refers to any output that has a positive total sales value. Main product, in a joint distribution process, is the product that has