A single cost incurred in producing or purchasing two or more essentially different products is a(n):
A) Product cost
B) Incremental cost
C) Differential cost
D) Joint cost
E) Fixed cost

Question

Quizplus · Accepted Answer

A joint cost is incurred when producing two or more different products that share common costs, such as materials or equipment. Joint costs cannot be directly attributed to any one product and must be allocated among the products based on a predetermined method. Therefore, D is the best choice among the given options.

A Single Cost Incurred in Producing or Purchasing Two or More