In deciding the profitability of processing joint products further after the split-off point,
all costs should be considered including joint costs incurred prior to the split-off point.

Question

Quizplus · Accepted Answer

In deciding the profitability of processing joint products further after the split-off point, only the incremental costs and revenues after the split-off point should be considered. Joint costs incurred prior to the split-off point are sunk costs and should not influence the decision.

In Deciding the Profitability of Processing Joint Products Further After