Corny Solutions processes various corn related food items. One of its facilities located in Iowa, performs some initial processing of corn on the cob once it arrives from the corn fields. The corn from that facility will be further processed elsewhere into corn for popping and corn meal. The costs incurred at the Iowa plant would be considered ________.
A) combined costs
B) distinct costs
C) fixed costs
D) common costs

Question

Quizplus · Accepted Answer

The costs incurred at the Iowa plant would be considered common costs as they are necessary for the processing of the corn on the cob, but the end products will be further processed elsewhere.

Corny Solutions Processes Various Corn Related Food Items