The Costs That Were Incurred in a Previous Process and Brought

question 123

Multiple Choice

The costs that were incurred in a previous process and brought into a later process as part of the product's cost are called ________ costs.

• A) transferred in
• B) transferred out
• C) accounted for
• D) to account for

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Definitions:

LIFO Method

"Last In, First Out" method; an inventory strategy where the most recently produced items are sold first, leaving older inventory in stock.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Inventory Valuation

Inventory valuation is the cost associated with an entity's inventory at the end of a reporting period, affecting the cost of goods sold and the inventory balance on the balance sheet.

Interim Financial Report

A financial statement reporting a corporation's performance over a period shorter than a fiscal year, usually quarterly.