Under what circumstance will it be profitable to continue processing after the split-off point?

Question

Quizplus · Accepted Answer

Continuing processing after the split-off point will only be profitable if incremental revenues from further processing exceed incremental processing costs incurred from that point onwards. This is because any sunk costs incurred before the split-off point are irrelevant to the decision-making process. Opportunity costs and sunk costs should not be considered in this decision as they are not relevant to incremental costs and revenues.

Under What Circumstance Will It Be Profitable to Continue Processing