The Technical Term for Costs Moving Between One Department and the Next

question 44

Multiple Choice

The technical term for costs moving between one department and the next in a multidepartment process is

• A) transferred costs.
• B) transferred out costs.
• C) transferred in costs.
• D) prior costs.

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Definitions:

Worksheet

A document used by accountants to organize and summarize financial information for the preparation of financial statements.

Credits

Entries in accounting that increase liabilities or equity, or decrease assets, representing the opposite of debits.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.