At Split-Off, the Joint Costs of Production for Joint Products

question 58

True/False

At split-off, the joint costs of production for joint products are not relevant to the sell-or-process-further decision.

---

Definitions:

Employees

Individuals who work for another person or organization in return for compensation.

Expressed Agency

An agency created in a written or oral agreement. Also called agency by agreement.

Principal

The main party to a transaction, such as a buyer or seller in a contract, or an individual who empowers another (agent) to act on their behalf.

Contract Authority

A power granted to an individual or entity to enter into legally binding agreements on behalf of another person or entity.