In a joint costing process,which of the following would not be considered a sunk cost?
A)direct material cost
B)direct labor cost
C)joint cost
D)costs incurred to further refine a product created by the process

Question

Quizplus · Accepted Answer

Sunk costs are costs that have already been incurred and cannot be changed, regardless of the decision made. Direct material cost and direct labor cost are incurred before the point of separation of joint products, and joint cost is the cost incurred in the joint production process. Therefore, they are all considered sunk costs. However, costs incurred to further refine a product created by the joint process are not yet sunk, as the decision to further refine or not can still be made.

In a Joint Costing Process,which of the Following Would Not