The amount of the joint costs is an important factor when considering to sell a product at the splitoff point or process it further.

Name: The amount of the joint costs is an important factor when considering to sell a product at the splitoff point or process it further.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Joint costs are sunk costs and should not influence the decision to sell at the splitoff point or process further; only incremental costs and revenues should be considered.

The Amount of the Joint Costs Is an Important Factor