Cost of previous department is a part of

A. transferred-in costs

B. transferred-out costs

C. FIFO costs

D. LIFO costs

Answer: Option A

Solution(By Examveda Team)

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.