All costs that are incurred between the split-off point and the point of sale are known as
A)sunk costs.
B)incremental separate costs.
C)joint cost.
D)committed costs.

Question

Quizplus · Accepted Answer

Incremental separate costs are incurred after the split-off point and are specific to each product or process. They are also known as after-split-off costs or post-separation costs. Joint cost is the cost of a process that produces two or more products in fixed proportions, up to the point of split-off. Sunk costs are costs that have already been incurred and cannot be recovered. Committed costs are costs that have been committed to but have not yet been incurred.

All Costs That Are Incurred Between the Split-Off Point and the Point