Before the split-off point, decisions relating to the sale or further processing of each identifiable product cannot be made independently of decisions about the other products.

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Before the split-off point, the different products are still interdependent and cannot be separated or processed independently. Decisions about the sale or further processing of one product will affect the others. For example, in the context of a manufacturing process, if raw materials are being processed into two different products, any decision about the quantity or quality of one product will impact the production and quality of the other product as well. It is only after the split-off point that the different products can be identified and managed separately.

Before the Split-Off Point, Decisions Relating to the Sale or Further