The amount of joint costs incurred before the splitoff point are ________ in deciding whether to process further.
A)relevant
B)irrelevant
C)not joint
D)needed
E)not the same whether the products are sold at the splitoff point or processed further.

Question

Quizplus · Accepted Answer

Joint costs incurred before the splitoff point are considered sunk costs and are therefore irrelevant in determining whether to process further. The decision should be based on the incremental costs and revenues associated with processing beyond the splitoff point.

The Amount of Joint Costs Incurred Before the Splitoff Point