In a sell or process further decision consider the following

In a sell or process further decision, consider the following costs:

.A variable production cost incurred prior to split-off. Il. A variable production cost incurred after split-off IIl. 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? Multiple Choice Only l Only IlI Only I and lI Only I and I11

Solution

A variable production cost incurred prior to split-off is not relevant in a decision regarding whether the product should be processed further Only 1 is correct