When a company is deciding whether to sell at split-off or process further, all the following assumptions are made except:
A)The marketplace has been assessed, and there is sufficient demand to meet the company's target income.
B)The decision is aligned with the organizational objectives.
C)The company has the capacity and capability to process the product further.
D)The decision will lead the company towards minimizing profits.

Question

Quizplus · Accepted Answer

The decision to process further is typically made to maximize profits, not minimize them.

When a Company Is Deciding Whether to Sell at Split-Off