Costs of manufacturing two or more products that are NOT separately identifiable as individual products until their split-off point are known as
A) separable costs.
B) joint costs.
C) incremental costs.
D) sunk costs.

Question

Quizplus · Accepted Answer

Joint costs are the costs of manufacturing two or more products that are not separately identifiable as individual products until their split-off point. Once the split-off point is reached, the products become separate and identifiable, and any costs beyond that point are considered separate costs for each product. Separable costs refer to costs that can only be attributed to one product and not shared between products. Incremental costs refer to the additional costs incurred when producing one additional unit of a product. Sunk costs are costs that have already been incurred and cannot be recovered.

Costs of Manufacturing Two or More Products That Are NOT