Stage 6 · The cost of one product
CAS-19: Joint Costs
One lorry of paddy gives rice, broken rice, bran and husk at the same moment. How much did the rice cost?
What you will learn in CAS-19
- Joint products, by-products and the split-off point (§4)
- Measuring joint cost and by-product credit (§5)
- Physical units, NRV and technical estimates (§6)
Chapters
- One lorry of paddy, four products · Find the cost the rice, broken rice and bran share (§§4.1, 4.4, 4.5, 4.7, 5.1–5.5)
- By weight or by value? · Share the joint cost two ways and compare (§§6.1, 6.2, 7, 8.1)
- Spot the mistakes in the joint cost sheet · Three mistakes are hiding (§§5.2, 5.5, 5.7, 6.2)
Key terms
- Joint costs and the split-off point (§§4.4, 4.7, 5.1–5.5): Joint costs: shared resources used at the same time to make two or more products. Split-off point: where the products can first be told apart. After that, each product carries its own further cost.
- Sharing joint cost (§§6.1, 6.2, 7, 8.1): Joint cost goes to the main products on the benefit each gets: (a) by weight or count, (b) by what each is worth at split-off, or (c) by technical estimates. By-products are valued at what they sell for, or by technical estimates. Say which basis you used.
Common questions
How are joint costs shared under CAS-19?
On benefits received, using physical units, net realisable value at the split-off point, or technical estimates (para 6.1).
CAS-19, Joint Costs. Checked against the standard in November 2026. Murugan’s rice mill and every figure in this lesson are fictional. Read the official text on the ICMAI Cost Accounting Standards page ↗ before applying it to real work.