Joint costs are incurred _____.
A)before the production process is started
B)before individual products are separately identified
C)after the split-off point but before the process-further decision
D)after the process-further decision

Question

Quizplus · Accepted Answer

Joint costs are incurred before individual products are separately identified at the split-off point. At this point, the joint products have not yet been differentiated, so it is not possible to assign costs to individual products. It is only after the split-off point that further processing occurs which can lead to the production of separate, identifiable products. Therefore, option B is the correct answer.

Joint Costs Are Incurred _____