What is the nature of a sell or process further decision?
A)It is an incremental revenue decision.
B)It is an incremental cost decision.
C)It is both an incremental revenue and incremental cost decision.
D)It is neither incremental revenue nor incremental cost.

Question

Quizplus · Accepted Answer

A sell or process further decision involves determining whether to sell a partially completed product or to continue processing it and selling it as a finished product. This decision involves both incremental revenue, as the sale of the finished product will generate additional revenue, and incremental costs, as the costs of processing the product further must be considered. Therefore, it is both an incremental revenue and incremental cost decision.

What Is the Nature of a Sell or Process Further