The costs that are incurred in last department, where the product has been processed and will be carried to next department for further processing are called __________?

Correct answer: B. transferred-in costs

  • A. partial work costs
  • B. transferred-in costs
  • C. transferred-out costs
  • D. weighted average costsCompare Credit Cards

Explanation

Transferred-in costs are the costs brought into a department from the preceding department after processing there. Transferred-out costs describe costs leaving the current department, so the wording refers to the costs received by the next 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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