Answer
Distinguishing between transferred-in costs and additional direct material costs is important in process costing for two reasons: it accounts for timing differences in material addition and enables the application of different control methods and responsibilities for these two cost categories.
Work Step by Step
Distinguishing between transferred-in costs and additional direct material costs is important in process costing for two reasons: it accounts for timing differences in material addition and enables the application of different control methods and responsibilities for these two cost categories.