In a Sell or Process Further Decision,consider the Following Costs

question 111

Multiple Choice

In a sell or process further decision,consider the following costs:
I.A variable production cost incurred prior to split-off.
II.A variable production cost incurred after split-off.
III.An avoidable fixed production cost incurred after split-off.
Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further?

• A) Only I
• B) Only III
• C) Only I and II
• D) Only I and III