In process costing, the costs incurred prior to the separation point after which the joint products are treated individually. Joint costs are therefore common to the joint products and need to be apportioned to determine individual product costs.
The common cost incurred in a production process that results in multiple products, typically allocated based on relative selling prices.
Sales values represent the prices charged for items when they are sold. Additionally, in accounting, they serve as a method of apportioning joint costs between joint products in process costing models.
