Transferred-In Costs

AAA

DEFINITION of 'Transferred-In Costs'

The money spent on switching the processing of a product or a service between departments of a company. Transferred-in costs combine manufacturing costs by the various departments and production processes. This method is more often used in cost accounting for companies that produce continuous similar units through a series of operations such as petroleum, chemical, textile and food processing companies.

INVESTOPEDIA EXPLAINS 'Transferred-In Costs'

Between two departments, lets say A and B, these costs would be attributed to units from Department A. Also referred to as the accumulated cost of a product when it first arrives in a production department. The unit cost of a product is determined by dividing total costs charged to the production department by the output of that department.

RELATED TERMS
  1. Holding Costs

    The associated price of storing inventory or assets that remain ...
  2. Carrying Costs

    The price of holding, or "carrying," inventory. Carrying costs ...
  3. Carrying Cost Of Inventory

    This is the cost a business incurs over a certain period of time, ...
  4. Inventory

    The raw materials, work-in-process goods and completely finished ...
  5. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
  6. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
Related Articles
  1. Measuring Company Efficiency
    Fundamental Analysis

    Measuring Company Efficiency

  2. How To Invest In Private Companies
    Investing Basics

    How To Invest In Private Companies

  3. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  4. 12 Things You Need To Know About Financial ...
    Investing Basics

    12 Things You Need To Know About Financial ...

comments powered by Disqus
Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center