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In by-product industry like sugar in the process of producing one main product sometimes you get one another product as by-product which you can use to make other products or sell saperately like sugar industry and making of sugar that you put sugar in production but after getting all the juices you get the garbage of sugar cane which is also use in production of paper so that garbage is by-product of main product of sugar which you can further process to make new product or sell at that stage.
So splitt-off point is that point where main product and by-product can be saperatable and at which point you can allocate the costs to each product saperately.
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