Which of the following best describes transferred-in costs?
A) they are the cost of transferring products from a vendor
B) they are value-added costs that are only considered in the first-in,first out process costing system
C) costs incurred in a previous department or process that are carried forward as the product's cost as that product moves to another department or process in the production cycle
D) they are the shipping costs related to finished goods that are transported to a customer's location

Question

Quizplus · Accepted Answer

Transferred-in costs refer to costs that have been incurred in a previous department or process and are carried forward as the product's cost as it moves to another department or process in the production cycle. This is typically seen in process costing systems where products pass through multiple processes and departments before completion. Option A describes transportation costs from vendors, option B describes value-added costs specific to the first-in, first-out system, and option D describes shipping costs related to finished goods.

Which of the Following Best Describes Transferred-In Costs