Joint costs are ________ in the sell-or-process further decision.
A)relevant
B)needed
C)essential
D)statistics
E)irrelevant

Question

Quizplus · Accepted Answer

Joint costs are not relevant in the sell-or-process further decision because those costs have already been incurred regardless of whether the product is sold or processed further. Only the incremental costs and revenues associated with each alternative should be considered.

Joint Costs Are ________ in the Sell-Or-Process Further Decision