The decision of whether or NOT to process joint products beyond their split-off point is
A)based on the total cost of the finished product including joint costs.
B)based on joint costs only.
C)based on selling price at split-off point.
D)based on additional revenues versus additional costs of processing further.

Question

Quizplus · Accepted Answer

The decision to process joint products beyond their split-off point should be based on the additional revenues it will generate compared to the additional costs that will be incurred. This approach ensures that the processing decision will result in a positive net income for the company. Therefore, option D is the best choice.

The Decision of Whether or NOT to Process Joint Products