joint product cost

joint product cost definition - business

joint product cost

In accounting, the cost assigned to a product that originates from a production process that results in several products. For example, crude oil is refined into several different products, including gasoline, heating oil, and kerosene. Joint products from the same process must be apportioned product costs in order to calculate profitability and tax consequences.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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