Question

Which of the following statements is false regarding joint costs?

Joint costs occur because there is one input that generates two or more outputs.
Joint costs are treated as period costs for financial and tax reporting purposes.
Joint costs can only be assigned to products by an allocation process.
Joint costs are sunk costs at the time a sell-or-process further decision is made.

Answer 1

I think the answer is B. Joint costs are treated as period costs for financial and tax reporting purposes.

Step-by-step explanation:

Joint cost refers to the price incurred by manufacturers that goes into producing more than one product or process. These costs include labor, material, and overhead costs towards the production of the joint product.