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ssing-stop-spl-chapter-11-problem-2q-solution-9781111788544-exc
Question
In a company that engages in a joint production process, will all processing stop at the splitoff point? Discuss the rationale for your answer.
Answer
Step 1
The Joint Process is the process as per which more than one product line is produced and
it results into a product that has sales value is classified as:
(a) Joint product
(b) By-product or
(c) Scrap
Step 2
No, the company that engages in the joint production process, all processing will not stop at
the split-off point because it is the point where the product becomes identifiable and at this
point the output might be sold or may be produced and then sold.
The split-off point might be two or more times during a joint process, depending on the type
and number of output produced. Therefore, the process does not stop it goes on running at
split-off point.