When deciding whether to process a product beyond the split-off point:
A) Joint costs are relevant
B) Joint costs are irrelevant
C) Separable costs are irrelevant
D) Revenue is irrelevant

Question

Quizplus · Accepted Answer

Joint costs are irrelevant when deciding whether to process a product beyond the split-off point because they have already been incurred up to that point and cannot be changed. The decision should be based on the additional separable costs of further processing compared to the incremental revenues that will be generated.

When Deciding Whether to Process a Product Beyond the Split-Off