Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called
A
partial work costs
B
transferred-in costs
C
transferred-out costs
D
weighted average costs
Correct Answer: transferred-in costs
Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.