What is the decision rule in deciding whether to sell a product or process it further?

The decision rule in a decision to sell a product or to process it further is: Process further as long as the incremental revenue from the additional processing exceeds the incremental processing costs.Click to see full answer. Furthermore, when deciding whether to sell a product at the split off point or process it further?When deciding whether to sell a product at the split-off point or process it further, joint costs are not usually relevant because: such amounts are sunk and do not change with the decision. what is the focus of a sell or process further decision? The sell or process further decision is the choice of selling a product now or processing it further to earn additional revenue. This choice is based on an incremental analysis of whether the additional revenues to be gained will exceed the additional costs to be incurred as part of the additional processing work. Beside above, should joint costs be considered in a sell or process further decision? Joint costs are irrelevant for your “sell or process further” decision. Those costs are the same, whether you sell the product at splitoff or process further. Incremental revenue is the additional revenue you get from selling one more unit that has been processed further. Incremental cost is the additional cost.How are allocated joint costs treated when making a sell or process further decision?They are allocated to the individual products. This is done based on the relative salves value of the joint products. It is irrelevant for any sell-or-process-further decisions because the joint product cost are sunk cost.

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