When making a decision to sell a joint product at the split-off point or process it further, which of the following is not relevant?
A)The amount of joint costs assigned
B)The sales value at the split-off point
C)The cost of further processing
D)The sales value after further processing

Question

Quizplus · Accepted Answer

The amount of joint costs assigned is not relevant to the decision of whether to sell a joint product at the split-off point or process it further. The decision should be based on the sales value at the split-off point versus the cost of further processing and the sales value after further processing. It does not matter how the joint costs were assigned.

When Making a Decision to Sell a Joint Product at the Split-Off