When producing joint products,what are the relevant costs for a decision to sell or process further?
A)Joint costs
B)Costs incurred before the splitoff point
C)Costs incurred at the splitoff point
D)Costs incurred after the splitoff point.

Question

Quizplus · Accepted Answer

Joint costs and costs incurred before or at the splitoff point are sunk costs and not relevant for decisions regarding further processing. Only the costs incurred after the splitoff point are relevant because they can still be influenced by the decision.

When Producing Joint Products,what Are the Relevant Costs for a Decision