Which of the following costs is NOT relevant to a decision to sell a product at split-off or to process the product further and then sell the product?
A)the joint costs allocated to the product
B)the selling price of the product at split-off
C)the additional processing costs after split-off
D)the selling price of the product after further processing

Question

Quizplus · Accepted Answer

Joint costs allocated to the product are sunk costs and are not relevant to the decision to sell a product at split-off or to process it further. These costs are incurred before the split-off point and cannot be changed by the decision.

Which of the Following Costs Is NOT Relevant to a Decision