That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:
A)Equivalent unit of output
B)Cost reconciliation
C)Batch production process
D)Transferred-in costs

Question

Quizplus · Accepted Answer

Cost reconciliation is the process of ensuring that the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period. This is done to ensure accuracy in inventory valuation and cost of goods sold calculation. Equivalent unit of output refers to the number of partially completed units that have the same amount of work done as a complete unit. Batch production process is a manufacturing process where a specific quantity of a product is produced at one time, often in multiple stages. Transferred-in costs refer to the costs of products that have been partially completed by a supplier and are then transferred to another company for further processing.

That Which Determine(s) Whether the Costs Assigned to Units Transferred