Costs that are common to two or more products are considered to be
A)joint costs.
B)split-off costs.
C)allocated costs.
D)shared fixed costs.

Question

Quizplus · Accepted Answer

Joint costs are costs incurred in a production process up to the point of split-off, where different products or divisions take separate paths. These costs are common to all the products produced in the process, and cannot be allocated to any one product without arbitrarily distorting their true costs.

Costs That Are Common to Two or More Products Are