Q153
When output of earlier process is transferred at a profit to the subsequent process, it is ________.
A.
inter departmental profit
B.
abnormal gain
C.
inter process profit
AnswerD.
manufacturing profit
Answer: Option C
Solution
Answer: Option C
Solution:
When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.