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Why Are Joint Costs Never Relevant in Deciding Whether to Sell

Question 61

Multiple Choice

Why are joint costs never relevant in deciding whether to sell a product at split-off or process it further?


A) Because they are sunk costs
B) Because they are the same under both alternatives
C) Because they have already been allocated to joint products
D) Because they are sunk costs AND because they are the same under both alternatives

Correct Answer:

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