Question

The costs transferred from a prior process to a subsequent process are a.treated as another type of materials cost for the receiving department. b.referred to as transferred-in costs (for the receiving department). c.referred to as the cost of goods transferred out (for the transferring department). d.All of these. e.None of these.

Answer 1

Answer:

D. All of the above

Explanation:

The cost transferred from a previous process to a current process is known as transferred in cost. It is incured when cost in one department is move to another. It is treated as another type of material cost for the receiving department and it is the cost of goods transferred out of the transferring department. It is the cost of one department moved to another.