Product C is one of several joint products that come out of Department M.The joint costs incurred in Department M total $40,000.Product C can be sold at split-off or processed further and sold as a higher quality item.The decision to process further should be based on the:
A) assumption that the $40,000 is irrelevant.
B) allocation of the $40,000,using the net realizable value.
C) allocation of the $40,000,using a physical measures approach.
D) allocation of the $40,000,using the relative sales value at split-off methoD.
The decision should not depend upon allocations.The joint cost is irrelevant.

Question

Quizplus · Accepted Answer

The joint cost is irrelevant to the decision of whether to process further.

Product C Is One of Several Joint Products That Come