[Verse 1] When one process makes multiple things From cattle come beef, leather, and more The costs pile up but how do we split Between the products walking out the door At the split-off point we have to choose Which method helps us allocate The joint costs fairly across the line Before we can calculate [Chorus] Split it off, split it off, at the separation point Relative sales value makes the allocation joint Joint products, by-products, sharing production costs Split it off, split it off, before the revenue's crossed R-S-V, that's the key, relative sales value method Split the costs proportionally, that's how it's developed [Verse 2] Joint products have significant worth They're the main reason for production By-products are the smaller yield With minor contribution Take the sales value at split-off point For each product in the mix Divide by total sales value That's your allocation fix [Chorus] Split it off, split it off, at the separation point Relative sales value makes the allocation joint Joint products, by-products, sharing production costs Split it off, split it off, before the revenue's crossed R-S-V, that's the key, relative sales value method Split the costs proportionally, that's how it's developed [Bridge] When products need more processing After the split-off stage Take the final selling price And work backwards on the page Subtract the additional costs To find the split-off worth Then allocate joint costs Based on relative sales birth [Verse 3] For by-products we can choose Deduct their value from joint cost Or recognize the revenue When the by-product is sold off The main products bear the burden Of the joint production cost While by-products just recover What in processing was lost [Chorus] Split it off, split it off, at the separation point Relative sales value makes the allocation joint Joint products, by-products, sharing production costs Split it off, split it off, before the revenue's crossed R-S-V, that's the key, relative sales value method Split the costs proportionally, that's how it's developed [Outro] From one input to many outputs Joint costing shows the way Allocate with fairness For accurate CPA
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