Which term refers to a cost transferred from a prior process to a subsequent process?
A) an added-in cost
B) a transferred-in cost
C) a Work-in-Process Inventory transfer cost
D) the beginning Work-in-Process Inventory cost

Question

Quizplus · Accepted Answer

A transferred-in cost refers to a cost that is transferred from a prior process to a subsequent process in the production of a product. It is also sometimes referred to as a joint cost. Option A is incorrect because an added-in cost is not a commonly used accounting term. Option C refers only to the transfer of work-in-process inventory and not the cost of production. Option D refers only to the beginning inventory cost and not to transferred-in costs.

Which Term Refers to a Cost Transferred from a Prior