The costs of manufacturing joint products after the split-off point are referred to as
A) joint costs.
B) outlay costs.
C) opportunity costs.
D) separable costs.

Question

Quizplus · Accepted Answer

The costs of manufacturing joint products after the split-off point are referred to as separable costs. This is because they can be easily traced directly to a specific product and are therefore separable from the joint costs incurred prior to the split-off point. Joint costs are the costs incurred up to the split-off point where the joint products become identifiable and are often allocated to the joint products based on some agreed-upon method. Outlay costs refer to any costs incurred to acquire or produce the products, while opportunity costs refer to the foregone benefits of choosing one alternative over another.

The Costs of Manufacturing Joint Products After the Split-Off Point