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In a sell or process turther decision, consider the tollowing costs I. A variable production cost incurred prior to split-off Il. A variable production cost incurred after split-off. II. An avoidable fixed production cost incurred after split-off Which of the above costs is (are) not relevant in a decision regarding whether the product should be processed further?

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Answer #1

In sell-process further decision making, only relevant costs must be considered. Costs to be incurred are relevant costs. Costs incurred in the past are sunk costs. Sunk costs are irrelevant costs, these costs should not be considerd.

Hence, correct option is "Only I"

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