Which of the Following Best Describes Transferred-In Costs

question 131

Multiple Choice

Which of the following best describes transferred-in costs?

• A) they are the cost of transferring products from a vendor
• B) they are value-added costs that are only considered in the first-in,first out process costing system
• C) costs incurred in a previous department or process that are carried forward as the product's cost as that product moves to another department or process in the production cycle
• D) they are the shipping costs related to finished goods that are transported to a customer's location

---

Definitions:

Volume Variance

The difference between the budgeted and actual volume of production, affecting fixed costs per unit and overall profitability.

Budgeted Overhead Costs

Estimated costs related to the indirect costs of production or operations planned for a specific period.

Standard Hours Allowed

The number of hours that should have been worked for the actual level of output.

Overhead Costs Applied

Refers to indirect costs allocated to a cost object (like a project, product, or department) using a predetermined rate.