Desprit of point is that point or stage of production at which the joint product and by product became separately indefinable the significance of split of point lies on the fat that its the point where cost can be classified as joint cost and specific cost where cost prior to split of point which are common to all product test known as joint specific cost after the split of point which can be all catered charge directly to a particular product methods of approaching joint cost physical unit method average unit technical point or survey contribution margin method market value market at split point method value after further processing method value method sale value after further processing less profit margin and selling distribution overhead further processing cost is equal to net realiseble value operating and service costing cost of providing or operating as service this method of Costing supplied by those under taking which provide service rather than production of commodities operating costing system is suitable for Transport companies Hospital status schools etc cost unit of service sector nature of industry job is performed against specific order each job is unique in nature that is heterogeneous cost of job is calculated only when a job is completed cost Centre is job there may or may not be work in process generally no transfer from one to another each is compiled separately by adding material labour and overhead detailed supervision and control is needed as each job is distinct and different from other process is continuous at the end product or h********** in nature It is a process where calculated at the end of each period since it is continuous one there is always some work in process will be there always output of the one process will transferred to next process as input the unit cost here is the average cost of the process for a given period supervision and control is comparatively easier as the process operation or standardised stages in production where in raw material or converted into one identify able stage to another it's a form of operating costing which a place where standardised goods or produced industries which uses process costing system or so paint Steel Industries etc it is defined as the loss of materialising during the course of processing operation and is equal to difference between the input quantity of the material and its output process flows can be classified into two normal loss and abnormal loss it is the loss of material which is inherent in the nature of work is known as normal lock in excess of the free determined loss. 
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