Transferred-in costs are treated as if they are 100 percent complete at the beginning of the process in the new department.

Question

Quizplus · Accepted Answer

Transferred-in costs are costs that have been incurred in previous departments and are now being transferred to a new department. They are treated as if they are 100 percent complete at the beginning of the process in the new department because they have already been incurred and completed in previous stages of production.

Transferred-In Costs Are Treated as If They Are 100 Percent