In joint product costing and analysis, which one of the following costs is relevant when deciding the point at which a product should be sold in order to maximize profits? (CMA adapted)
A) Separable costs after the split-off point.
B) Joint costs to the spilt-off point.
C) Sales salaries for the period when the units were produced.
D) Purchase costs of the materials required for the joint products.

Question

Quizplus · Accepted Answer

Separable costs after the split-off point are relevant because they are incurred only if the product is processed further beyond the split-off point. These costs help determine if further processing will increase profits.

In Joint Product Costing and Analysis, Which One of the Following