Answer (B) is correct . Joint products are common products created from processing a single input (e.g., gasoline, diesel fuel, and kerosene). Joint products have common costs until they reach the split-off point. Joint costing assigns common costs to joint products.
Answer (A) is incorrect because Indirect costing is a nonsense term. Direct costing charges products only with variable costs.
Answer (C) is incorrect because Differential costing is not a commonly used term, but it could mean costing common products at a fixed differential.
Answer (D) is incorrect because Incremental costing is not a common term either, but it could mean costing in increments.
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