Chapter 16, Problem 16.13Q

To determine

Separable costs:

Separable costs are the cost assigned to each product after the split-off point. These costs are directly assigned to products and are distinguishable to individual product.

Split-off Point:

Split-off point is the point in production process where joint products are capable of being distinguished individually.

Incremental costs:

Incremental costs are the additional rise in the cost due to additional production activity.

To identify: Costs and revenues to be considered by the managers for making decision of selling at split off or further processing.