In producing oat bran, the joint cost of milling the oats into bran, oatmeal, and animal feed is considered a direct cost to the oat bran, because the oat bran cannot be produced without incurring the joint cost.

Question

Quizplus · Accepted Answer

Joint costs are not considered direct costs to any single product because they are incurred in the process of producing multiple products simultaneously.

In Producing Oat Bran, the Joint Cost of Milling the Oats