Process costing in a multi-department setting


Which of the following is true concerning process costing in a multi-department setting?

Successor departments may only add additional direct labor or overhead, no additional raw materials are added in a successor department.

Successor departments must change the unit of measure to reflect the work done in that department.

In a multidepartment processing facility, goods are generally transferred from a successor (downstream) department to a predecessor (upstream) department.

When goods are transferred from one department to another, costs are also transferred.

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Accounting Basics: Process costing in a multi-department setting
Reference No:- TGS0515549

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