Asked by Loretta Foshee on Apr 28, 2024
Verified
Johnson Lumber Mill produces various grades of cut boards from raw lumber. The costs incurred once the cut boards are separated and processed further are
A) investment center costs
B) joint costs that cannot be separated
C) new costs that can be traced to the various grades of lumber being produced
D) new costs that cannot be traced to the various grades of lumber being produced
Joint Costs
Joint costs are costs incurred during the process of producing two or more products simultaneously, where such costs cannot be easily attributed to each product individually.
Cut Boards
The processed lumber cut into specific lengths or sizes, typically for use in construction or carpentry.
- Distinguish between expenses incurred before and after the split-off point within joint production operations.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
C
Explanation :
The costs incurred after the cut boards are separated and processed further are new costs that can be directly traced to the various grades of lumber being produced. These costs are specific to the processing of each grade, making them directly attributable to each product.
Learning Objectives
- Distinguish between expenses incurred before and after the split-off point within joint production operations.
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