A joint producft should be processed beyond split-off if additional revenue from further processing exceeds
A)joint costs.
B)allocated joint costs.
C)allocated joint costs and additional costs of further processing.
D)additional costs of further processing.

Question

Quizplus · Accepted Answer

A joint product should be processed beyond split-off only if additional revenue from further processing exceeds the additional costs of further processing. Allocated joint costs are already incurred and do not affect the decision to process beyond split-off.

A Joint Producft Should Be Processed Beyond Split-Off If Additional