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Commerce · Q678

Costing

Graduate and Post Graduate · Commerce · question 678

Q678

Cost of previous department is a part of

A.
transferred-in costs
Answer
B.
transferred-out costs
C.
FIFO costs
D.
LIFO costs

Answer: Option A

Solution

Answer: Option A
Solution:
Cost of previous department is a part of 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.