Product costs incurred after the split-off point in a joint processing environment are termed:
A)separable processing costs.
B)joint product costs.
C)non-relevant costs.
D)scrap costs.
E)spoilage costs.

Question

Quizplus · Accepted Answer

Separable processing costs refer to the costs incurred after the split-off point in a joint processing environment. These costs are identifiable with specific products and can be allocated to them. Joint product costs refer to the costs incurred up to the split-off point, and are common to all the joint products that are produced. Non-relevant costs, scrap costs, and spoilage costs are not related to the question being asked.

Product Costs Incurred After the Split-Off Point in a Joint