The decision to further process a joint product is influenced by:

Question

Quizplus · Accepted Answer

The decision to further process a joint product is primarily influenced by the costs of further processing. This decision is based on whether the additional revenue generated from further processing exceeds the additional costs incurred. Common costs allocated to the product, the amount of costs already incurred, and the amount of fixed overhead absorbed are considered sunk costs and should not influence the decision.

The Decision to Further Process a Joint Product Is Influenced