Joint- and by-product costing

Joint- and by-product costing

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 5: Costing in Different Situations

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of joint- and by-product costing.
• Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

• Concept, features and objectives
• Joint versus main versus by-products
• Joint-cost apportionment by output and revenue
• Accounting for joint and by-products

Detailed Microsyllabus

1. Joint and by-products

   1. Joint products, main products and by-products.
   2. Split-off point and common costs.
   3. Objectives and limits of joint-cost allocation.

2. Apportionment and accounting

   1. Output-based and revenue-based apportionment.
   2. Value and record joint and by-product output under the prescribed method.
   3. Recognize that allocated joint cost is not always decision-relevant.

---

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.