In a multiple department process, the costs of units transferred out of one department and into another are called prior department costs.

Name: In a multiple department process, the costs of units transferred out of one department and into another are called prior department costs.
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Prior department costs refer to the costs associated with units that have been transferred from one department to another within a manufacturing process, representing the accumulated costs from previous departments.

In a Multiple Department Process, the Costs of Units Transferred