When deciding the point at which a product should be sold to maximize profits in a joint product costing and analysis, which one of the following costs is relevant?
A)Separable costs after the split-off point.
B)Sales salaries for the period when the units were produced.
C)Joint costs to the split-off point.
D)Purchase costs of the materials required for the joint products.

Question

Quizplus · Accepted Answer

Separable costs after the split-off point are relevant because they are incurred only if the product is processed further and can affect the decision to sell at split-off or process further.

When Deciding the Point at Which a Product Should Be