Joint products should be processed beyond the split-off point if _____.
A)incremental expenses exceed incremental revenues
B)sale of the product is guaranteed
C)additional net revenue exceeds the sales value at split-off
D)there is a market for the joint products

Question

Quizplus · Accepted Answer

Joint products should be processed beyond the split-off point if the additional net revenue generated from the further processing exceeds the sales value of the joint products at the split-off point. This ensures that the additional processing will result in a positive contribution to the company's overall profitability.

Joint Products Should Be Processed Beyond the Split-Off Point If