The cost of previous department is a part of ____________?
Correct answer: A. transferred-in costs
- A. transferred-in costs
- B. transferred-out costs
- C. FIFO costs
- D. LIFO costsCompare Credit Cards
Explanation
Costs incurred by a previous department become transferred-in costs when the partially completed product enters the next department. Transferred-out costs are the costs sent onward from the current department.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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