Which of the following would not be a joint-product cost?
A) Cost of picking apples to be processed into cider and applesauce in a cider factory
B) Cost of cinnamon used in applesauce
C) Cost of maintaining oil rigs for an oil manufacturer
D) Costs of running a fishing boat that sells haddock, cod, and lobsters to wholesalers

Question

Quizplus · Accepted Answer

Joint-product costs are the costs incurred up to the split-off point where multiple products are produced from the same process or inputs. The cost of cinnamon used in applesauce is not a joint-product cost because it is added after the split-off point, specifically to the applesauce, and does not affect the cost of producing cider.

Which of the Following Would Not Be a Joint-Product Cost