Joint costs are not relevant to the decision to sell a product at the split-off point or to process the product further

Name: Joint costs are not relevant to the decision to sell a product at the split-off point or to process the product further
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

Joint costs are sunk costs at the split-off point, meaning they have already been incurred and cannot be changed by the decision to sell or process the product further. The decision should be based on the incremental costs and benefits of further processing.

Joint Costs Are Not Relevant to the Decision to Sell