Which of the following costs is not relevant to a decision to sell a product at split-off or process the product further and then sell the product?
A) joint costs allocated to the product
B) the selling price of the product at split-off
C) the additional processing costs after split-off
D) the selling price of the product after further processing

Question

Quizplus · Accepted Answer

Joint costs allocated to the product are sunk costs and are not relevant to the decision regarding further processing or selling at split-off. The decision should be based on incremental costs and benefits after the split-off point.

Which of the Following Costs Is Not Relevant to a Decision