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Transferred in costs a. represent the total product cost to the receiving department. b. represent the...

Transferred in costs

a. represent the total product cost to the receiving department.

b. represent the actual total costs of the shipping department.

c. are often treated as raw material to the receiving department.

d. often transfer inefficiencies from the shipping department to the receiving department.

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Answer #1

Correct answer----Variable(c ) are often treated as raw material to the receiving department.

.

Transferred in cost is generally the units transferred from one department to another. The transferee takes the transferred in units as raw material because some processing is need to be done by that department.

The sending department treats transferred units as complete for their perspective but for receiving department it's not complete.

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