Manufacturers incur many costs in the production process.
[2] It can also be defined as the cost to operate joint-product processes including the disposal of waste.
Nonengineering methods are mainly based on the market share of the product; the higher market share, the higher proportion assigned to it e.g. net realizable value.
Substantial costs of a flight (pilots, fuel, wear and tear on the plane, landing and takeoff fees) are a joint cost between carrying passengers and carrying freight, and underlie economies of scope across passenger and freight services.
Some costs are specific to the services, for instance, meals and flight attendants are specific costs of carrying passengers.