Johnson Lumber Mill produces various grades of cut boards from raw lumber. The costs incurred before the split-off point where the cut boards are separated and processed further are a. new costs that cannot be traced to the various grades of lumber being produced b. new costs that can be traced to the various grades of lumber being produced c. investment center costs d. joint costs that cannot be separated

Externalities or spillover occurs when some of the benefits or the costs of production are not fully reflected in market demand or supply schedules.

Ibelieve that the answer is d. because that is the only option that is efficient.

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

The correct answer is  "b)  net income overstated, assets unaffected, liabilities understated, and owner's equity overstated."