What type of cost is the result of an event that results in more than one product or service simultaneously?
A) byproduct cost
B) joint cost
C) main cost
D) separable cost

Question

Quizplus · Accepted Answer

Joint cost is the type of cost that results from an event that produces more than one product or service simultaneously. Examples include refining crude oil, processing lumber into different wood products, or splitting dairy milk into cream and skim milk. These costs cannot be easily separated between the different products, so they are allocated based on a predetermined cost allocation method.

What Type of Cost Is the Result of an Event