Which of the Following Costs Is NOT Relevant to a Decision

question 34

Multiple Choice

Which of the following costs is NOT relevant to a decision to sell a product at split-off or to process the product further and then sell the product?

• A)the 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

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.