In joint costing, which of the following changes may lead to a change in product classification?
A) main product sales price increases due to a new application
B) byproduct sales price decreases due to a new government regulation
C) main product becomes technologically obsolete and it's market value falls significantly
D) byproduct losses value due to a competing products

Question

Quizplus · Accepted Answer

If the main product becomes technologically obsolete and its market value falls significantly, it may no longer be considered the main product and may be classified as a byproduct or even scrapped altogether. The other options may impact pricing or profitability, but they do not necessarily affect the classification of the products.

In Joint Costing, Which of the Following Changes May Lead