Only the revenues from selling or processing a product beyond the split-off-point and any expenditures from additional processing are relevant factors in deciding whether to process a product beyond the split-off point.

Question

Quizplus · Accepted Answer

The decision to process a product beyond the split-off point should be based on the incremental revenues and costs incurred after the split-off point. Costs and revenues before the split-off point are sunk and not relevant to this decision.

Only the Revenues from Selling or Processing a Product Beyond