Question

Joint costs are ______. Multiple choice question. economically attributable to all end products irrelevant in decisions regarding what to do with a product after split-off common costs that must be allocated to make decisions about the individual products increased or decreased after the split-off point

Answer 1

Joint costs are irrelevant in decisions regarding what to do with a product after split-off.

The reason for this answer is because they are not relevant for the decision to either sell or to process further.

The costs are the same. It does not matter if you are to sell at a split off or not. We can then regard it as either a past or sunk cost. In summary it means that they have being paid off already.

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