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A Product May Be Processed Beyond the Split-Off Point If

Question 89

Multiple Choice

A product may be processed beyond the split-off point if management believes that


A) its marketability will be enhanced.
B) the incremental cost of further processing will be less than the incremental revenue of further processing.
C) the joint cost assigned to it is not already greater than its prospective selling price.
D) both a and b.

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