A cost incurred in producing or purchasing two or more products at the same time is a(n):
A) Product cost.
B) Incremental cost.
C) Differential cost.
D) Joint cost.
E) Fixed cost.

Question

Quizplus · Accepted Answer

Joint cost is incurred when two or more products are produced or purchased at the same time. It is a common cost that cannot be allocated to any specific product without arbitrary estimates. Joint costs are typically incurred in industries such as a chemical production, where multiple products are obtained from a single raw material.

A Cost Incurred in Producing or Purchasing Two or More