If the incremental costs are greater than the incremental revenue, the product should not be processed further and sold at the split-off point.

Name: If the incremental costs are greater than the incremental revenue, the product should not be processed further and sold at the split-off point.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

If incremental costs exceed incremental revenue, further processing would lead to a loss, so selling at the split-off point is more profitable.

If the Incremental Costs Are Greater Than the Incremental Revenue