Discuss Process Costing in a Multi-Department Atmosphere

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The Answer is When a business has more than one department in its production process,products are transferred from Department A to Department B and so on.As the products are transferred from department to department so,too,must the costs be transferred.When products are transferred,the units and costs are treated as input material in the next department.The new department may add additional material or may simply add conversion costs and finish the products.The total cost of the products is a cumulative total from all departments within the process.

Discuss Process Costing in a Multi-Department Atmosphere

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