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Commerce · Q717

Costing

Graduate and Post Graduate · Commerce · question 717

Q717

Costs incurred in production process that yield range of products simultaneously are known as

A.
separable costs
B.
joint costs
Answer
C.
main costs
D.
split off costs

Answer: Option B

Solution

Answer: Option B
Solution:
Costs incurred in production process that yield range of products simultaneously are known as joint costs. Joint cost is the manufacturing cost incurred on a joint production process which takes common inputs but simultaneously produces multiple products called joint-products.