In a decision to either sell as is or process a product further, joint costs are considered irrelevant and process further costs are considered relevant.
The decision of whether to sell the product right away or wait to sell it in order to earn more money. Although we think that growing the business's income is great, we also need to make sure that the costs associated with the growth will be met. We must contrast the profit margin between selling now and selling later because additional processes will demand more resources and expenses.
Additionally, we need to make an effort to maximise the return on our investment. Additional processes might need more money spent on equipment. These factors require us to apply the sell or process further technique in order to choose the best course of action.
Typically, this scenario occurs in a joint product where one or more outputs can be generated and produce additional revenue. The joint products are produced at the same cost up until the point where they are divided and further sold or processed. Although the products can be sold at the split point, there are instances when continuing developing them is more profitable.
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Answer:
encourages employees to re-examine their basic assumptions about a problem and its possible solutions.
Explanation:
Constructive conflict encourages employees to re-examine their basic assumptions about a problem and its possible solutions.
When employees working in an organization are engaged in a constructive conflict, they are able to draw from a variety of ideas, opinions and views of the other party and by extension moving the organization forward in its operations, goals, objectives and mission.
<em>Hence, a constructive conflict enhances the level of output or production in an organization rather than inhibitions of growth and development. </em>
