When products and their costs are moved from one process to the next process,what is the term for these costs?
A)unit costs
B)transferred-in costs
C)WIP inventory costs
D)equivalent unit costs

Question

Quizplus · Accepted Answer

The costs that are moved from one process to the next process are called transferred-in costs. These costs are typically included in the cost of production for the next process, and are usually associated with partially completed products that are transferred from one process to the next in a manufacturing or production process. Unit costs refer to the cost of producing one unit of product, WIP inventory costs refer to the cost of raw materials, labor, and overhead associated with work-in-process inventory, and equivalent unit costs refer to the cost of producing one unit of product using different methods or processes.

When Products and Their Costs Are Moved from One Process