In a sell or process further decision, consider the following costs:

I. A variable production cost incurred prior to split-off.

II. A variable production cost incurred after split-off.

III. 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?

Multiple Choice

Only III

Only I and II

Only I

Only I and III