For a firm, which produces its product through two processes, the costs transferred into Process 2 from Process 1 can be described as
A) prior process costs.
B) transferred in costs.
C) prior period costs.
D) prior process costs AND transferred in costs.

Question

Quizplus · Accepted Answer

The costs transferred into Process 2 from Process 1 are referred to as both prior process costs and transferred in costs, indicating the costs incurred in the previous process that are now being carried forward into the subsequent process for further processing.

For a Firm, Which Produces Its Product Through Two Processes