When output of earlier process is transferred at a profit to the subsequent process, it is ________.

A. inter departmental profit

B. abnormal gain

C. inter process profit

D. manufacturing profit

Answer: Option C

Solution(By Examveda Team)

When output of earlier process is transferred at a profit to the subsequent process, it is inter process profit. The profit associated with the transfer of goods from one process to another process is called inter-process profit.