Process costing: Difference between revisions

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Under process costing, costs are accumulated for each separate process or operation for a period of time, and then averaged by dividing the total cumulative costs for the period by a measure of the output (for the same period).   
Under process costing, costs are accumulated for each separate process or operation for a period of time, and then averaged by dividing the total cumulative costs for the period by a measure of the output (for the same period).   


== See also ==
== See also ==
* [[Job costing]]
* [[Job costing]]
* [[Process strategy]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]

Latest revision as of 21:25, 25 September 2020

Process costing (rather than job costing) is used when production is of homogenous items and is organised on a continuous or flow-line basis.

Under process costing, costs are accumulated for each separate process or operation for a period of time, and then averaged by dividing the total cumulative costs for the period by a measure of the output (for the same period).


See also