Which of the following costs is NOT relevant to a decision to sell a product at split-off or process the product further and then sell the product?
A)joint costs allocated to the product
B)the selling price of the product at split-off
C)the additional processing costs after split-off
D)the selling price of the product after further processing

Question

Quizplus · Accepted Answer

Joint costs allocated to the product are sunk costs and not relevant to the decision of selling a product at split-off or processing it further. These costs are incurred before the split-off point and do not change regardless of the decision made after the split-off.

Which of the Following Costs Is NOT Relevant to a Decision