| by-product | A joint product with very little value relative to the other joint products.
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| direct method (of preparing the statement of cash flows) | A method of preparing the operating activities section of a statement of cash flows. A cash-basis income statement is constructed in which operating cash disbursements are subtracted from operating cash receipts.
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| direct method (of service department cost allocation) | A method of service department cost allocation in which service department costs are allocated directly to the production departments.
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| dual cost allocation | An approach to service department cost allocation in which variable costs are allocated in proportion to short-term usage and fixed costs are allocated in proportion to long-term usage.
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| joint production process | A production process that results in two or more joint products.
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| joint products | The outputs of a joint production process.
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| net realizable value | A joint product's final sales value less any separable costs incurred after the split-off point.
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| net-realizable-value method | A method in which joint costs are allocated to the joint products in proportion to the net realizable value of each joint product.
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| physical-units method | A method in which joint costs are allocated to the joint products in proportion to their physical quantities.
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| reciprocal service | The mutual provision of service by two service departments to each other.
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| reciprocal-services method | A method of service department cost allocation that accounts for the mutual provision of reciprocal services among all service departments.
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| relative-sales-value method | A method in which joint costs are allocated to the joint products in proportion to their total sales values at the split-off point.
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| service (or support) departments | Subunits in an organization that are not involved directly in producing the organization's output of goods or services.
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| split-off point | The point in a joint production process at which the joint products become identifiable as separate products.
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| step-down method | A method of service department cost allocation in which service department costs are allocated first to service departments and then to production departments.
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