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Log in through your institution journal article Decision Making When Joint Products are InvolvedThe Accounting Review Vol. 46, No. 4 (Oct., 1971) , pp. 746-755 (10 pages) Published By: American Accounting Association https://www.jstor.org/stable/244253 Read and download Log in through your school or library Subscribe to JPASS Unlimited reading + 10 downloads Journal Information The Accounting Review is the premier journal for publishing articles reporting the results of accounting research and explaining and illustrating related research methodology. The scope of acceptable articles embraces any research methodology and any accounting-related subject. The primary criterion for publication in The Accounting Review is the significance of the contribution an article makes to the literature. Publisher Information The American Accounting Association is the world's largest association of accounting and business educators, researchers, and interested practitioners. A worldwide organization, the AAA promotes education, research, service, and interaction between education and practice. Formed in 1916 as the American Association of University Instructors in Accounting, the association began publishing the first of its ten journals, The Accounting Review, in 1925. Ten years later, in 1935, the association changed its name to become the American Accounting Association. The AAA now extends far beyond accounting, with 14 Sections addressing such issues as Information Systems, Artificial Intelligence/Expert Systems, Public Interest, Auditing, taxation (the American Taxation Association is a Section of the AAA), International Accounting, and Teaching and Curriculum. About 30% of AAA members live and work outside the United States. Rights & Usage This item is part of a JSTOR Collection. Recommended textbook solutions
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Century 21 Accounting: General Journal11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman 1,009 solutions Accounting23rd EditionCarl S Warren, James M Reeve, Jonathan E. Duchac 2,210 solutions Principles of Managerial Finance13th EditionChad J. Zutter, Lawrence J Gitman 1,766 solutions should be sold at the split-off point or processed further? An incremental cost is the change in cost that will result from some proposed action. An opportunity cost is the benefit that is lost or sacrificed in rejecting some course of action. A sunk cost is a cost that has already been incurred and that cannot be changed by any future decision Answer & Explanation Solved by verified expert Rated Helpful sque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictu trices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec Unlock full access to Course Hero Explore over 16 million step-by-step answers from our library Subscribe to view answer Step-by-step explanation ctum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit ipsum do molestie consequat, ultrices ac magna. Fusce dui lectus, congue vel laoreet ac, di fficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Student review 100% (1 rating) "Thank you for helping me understand" What are the basic rules to determine whether a joint product should be sold at the splitAnswer: A product should be sold at the split-off point if there is not any incremental profit from processing the product further. As long as the process as a whole is profitable, it is irrelevant if an individual product is not profitable.
Which products should be sold at split off and which products should be processed further?Split-off point refers to the moment in the manufacturing process when different products become separately identifiable. If the incremental sales revenue is greater than incremental costs, it makes sense to process further. Otherwise, it is better to sell at the split-off point.
What is the splitA split-off point is the location in a production process where jointly manufactured products are henceforth manufactured separately; thus, their costs can be identified individually after the split-off point. Prior to the split-off point, production costs are allocated to jointly manufactured products.
How does a company determine whether to sell a product as is or process it further?The decision whether to process further is based on the incremental profit after the split off point. The question is whether the additional incremental revenues earned justify the additional incremental processing costs incurred to produce the finished products.
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What are the basic rules to determine whether a joint product should be sold at the split
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