Answer :
Answer:
d.Any new costs incurred in FFC's production process after the split-off point can be traced to one of the three final products.
Explanation:
the following statements regarding the new costs incurred in the FFC production process after the split-off point : any new costs incurred in FFC's production process after the split-off point can be traced to one of the three final products.
Costs before the split-off point will have to be allocated as joint costs but those costs incurred in the production process after the split-off point are directly traceable to the final products.
Answer:
D) Any new costs incurred in FFC's production process after the split-off point can be traced to one of the three final products.
Explanation:
Before the split-off point, the plant only produces one product or component.
⇒product A1 ⇔ specific costs of A1
product A ⇒product A2 ⇔ specific costs of A2
⇒product A3 ⇔ specific costs of A3
After the split-off point, three separate products (all derived from the original) are manufactured. Before the split-off point, all the costs are assigned to the original or base product, and then after the split-off point every cost must be assigned to one of the products.