what is a joint cost what is a separable cost
A joint cost is a kind of common cost that occurs after a raw product, such as a sunflower crop, undergoes two separate production processes. For example, the cost of fertilizing and harvesting sunflowers qualifies as a common cost.If a company uses the kernels in two or more different processes -- such as roasting and crushing -- the costs become joint costs. Another example of joint costing is feeding both sheep and cattle.pecial numbers or attribution in accounting indicates the cost is a joint cost. As such, the accounting department assigns the cost twice in the appropriate proportion to the corresponding departments. Joint costing makes a useful tool for encouraging budgeting cooperation between departments.
Specific costs are for project components that contribute to a single purpose; for example, the cost of recreation facilities around a multipurpose reservoir. Separable costs are the costs that are specifically necessary because a purpose is included in a multipurpose project.pecific costs are for project components that contribute to a single purpose; for example, the cost of recreation facilities around a multipurpose reservoir. Separable costs are the costs that are specifically necessary because a purpose is included in a multipurpose project.