Which of the following best describes transferred-in costs in process costing?
A) These costs are incurred in previous departments that are carried forward to subsequent departments.
B) These costs are transferred in to the company by an external vendor.
C) These costs are incurred in transferring raw materials and labor from the place of availability to the factory.
D) These costs cannot be controlled by an organization as they are transferred to the organization from the market participants.

Question

Quizplus · Accepted Answer

Transferred-in costs are costs that are incurred in previous departments and are carried forward to subsequent departments in the production process. These costs are essentially costs that are transferred between departments within the same company.

Which of the Following Best Describes Transferred-In Costs in Process