In the chapter, we said that the costs from a prior department are often excluded when comparing

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In the chapter, we said that the costs from a prior department are often excluded when comparing a department's cost with its standards or budgets. However, when a department buys materials from an outside firm, those costs would almost always be part of the evaluation process. Why might a firm treat prior period costs differently for evaluation purposes from direct material costs purchased from another firm?
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Related Book For  answer-question

Fundamentals of Cost Accounting

ISBN: 978-1259565403

5th edition

Authors: William Lanen, Shannon Anderson, Michael Maher

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