Sell or Process Further

Question 1

Decision to sell at the split off point

Answer 1

involves comparing incremental revenues and incremental costs

Question 2

Separate Costs (after split off)

Answer 2

are Relevant

Question 3

Joint Costs (prior to split off)

Answer 3

are Not Relevant

Question 4

Decision to sell

Answer 4

Incremental Costs > Incremental Revenues

Question 5

Decision to Process Further

Answer 5

Incremental Revenues > Incremental Costs