The amount of joint costs allocated to a product must be considered when deciding whether to sell a joint product at the split-off point or later after additional processing.

Question

Quizplus · Accepted Answer

The decision to sell a joint product at the split-off point or process it further should be based on the incremental revenue and costs from additional processing, not on the joint costs allocated to the product, as these are sunk costs and do not change with the decision.

The Amount of Joint Costs Allocated to a Product Must