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Isaac Dunlap
on Nov 12, 2024

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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

Goods that are produced and used as inputs in the production of other goods, rather than being sold directly to consumers.

Processed Further

A decision in cost accounting regarding whether or not to continue adding value to a product beyond the split-off point.

  • Understand the criticality of cost factors in making decisions about production or procurement, extra processing actions, and exceptional pricing approaches.
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SK
Sydney KeeferNov 17, 2024
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