Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called

A. partial work costs

B. transferred-in costs

C. transferred-out costs

D. weighted average costs

Answer: Option B

Solution(By Examveda Team)

Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called 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.