A cost incurred to produce or purchase 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

A joint cost is a cost incurred to produce or purchase two or more products at the same time. It is usually associated with the production of joint products or by-products. Therefore, option D is the correct answer. Options A, B, and C are not correct because they do not specifically identify multiple products being produced or purchased at the same time. Option E is not correct because joint costs can be either fixed or variable.

A Cost Incurred to Produce or Purchase Two or More