Which of the following is TRUE regarding the costs of toxic waste disposal, reclamation, and remediation that result from joint production processing?
A) Toxic waste costs are treated in the same manner byproduct costs.
B) Disposal costs should be expensed, other costs charged to cost of goods sold.
C) The costs should be valued in inventory at net realizable value.
D) Toxic waste costs are a life-cycle cost that should be added to joint production costs prior to allocation.
E) All toxic waste costs should be expensed as do not form part of the product.

Question

Quizplus · Accepted Answer

Toxic waste costs are considered life-cycle costs associated with the production process. They are added to the joint production costs before allocation to ensure that the full cost of production, including environmental and disposal considerations, is accurately reflected. This approach recognizes the broader responsibilities of producers in managing the environmental impact of their operations.

Which of the Following Is TRUE Regarding the Costs of Toxic