Managerial Accounting

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Relevant Costing: Sell at Split-off or Process Further

MGRACT-1ZRWKC

Harley Company processes wood and from the wood produces furniture. Harley is trying to decide whether to sell the wood at the split-off point or process it further.

Which costs are relevant in making the decision of whether to sell at split-off or process further?

A

Cutting trees.

B

Hauling trees from the forest to the plant.

C

Treating the wood before split-off.

D

Costs incurred beyond split-off .