In joint-process costing and analysis, which of the following costs would not be relevant when deciding the point at which a product should be sold to maximize profits?
A) The cost of the machinery used to produce the three products
B) The selling price at the split off point
C) The additional processing costs
D) The selling price if the product is processed further

Question

Quizplus · Accepted Answer

The cost of the machinery used to produce the three products is a sunk cost, meaning it has already been incurred and cannot be changed by any future action. Therefore, it is not relevant when deciding the point at which a product should be sold to maximize profits.

In Joint-Process Costing and Analysis, Which of the Following Costs