Asked by Radiate Waldemariam on Jul 17, 2024
Verified
The costs of initially producing an intermediate product should be considered in deciding whether to further process a product, even though the costs will not change, regardless of the decision.
Intermediate Product
A product that requires further processing before it is considered a finished good ready for sale to consumers.
- Familiarize oneself with the ideas of differential cost and revenue and their pivotal role in scrutinizing business options.
Verified Answer
TL
Thuso LebeloJul 24, 2024
Final Answer :
False
Explanation :
The costs of initially producing an intermediate product are considered sunk costs and should not influence the decision on whether to further process a product, as these costs remain the same regardless of the decision.
Learning Objectives
- Familiarize oneself with the ideas of differential cost and revenue and their pivotal role in scrutinizing business options.
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