When a company produces joint products and is deciding whether to sell a product at the split-off point or to process it further, which of the following represents the correct financial rule?

Test yourself: pick an answer

• A)The product should be processed further if its total sales revenue exceeds the total joint costs.
• B)The product should be processed further if the incremental revenue from further processing exceeds the incremental cost of further processing.
• C)The joint costs incurred prior to the split-off point must be treated as relevant costs in the further processing decision.
• D)The product must always be processed further if the final selling price is higher than the split-off selling price.