split-off point

A split point is the stage in the production process at which joint products are identified as distinct products that can be sold or processed further; In which several products emerge from a common process.

The split-off point is the stage in a joint production process where products become separately identifiable and can be sold or processed further.

- Used in product/service costing, budgeting, and variance analysis.
- Used to support pricing decisions and profitability analysis by cost behavior and drivers.

- Example: The costing team uses **split-off point** to allocate costs and analyze margins by product line.

- Why it matters: Improves cost accuracy, supports better pricing and budgeting, and strengthens performance measurement.