Finance:Further processing cost
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Revision as of 23:00, 31 July 2021 by imported>Wikisleeper (update)
Further processing cost is the cost incurred to make joint products ready for further use or sale after the production process' split-off point.[1]
Example
Timber sawing produces different joint products as outputs, e.g. grade A and B lumber and scrap wood. Scrap wood can be further processed into wood chips and wood pulp but doing so will let the company incur further costs, i.e. further processing costs.
References
- ↑ Wouters, Mark; Selto, Frank H.; Hilton, Ronald W.; Maher, Michael W. (2012): Cost Management: Strategies for Business Decisions, International Edition, McGraw-Hill, p. 535.
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