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]] | ||
Revision as of 11:24, 22 June 2016
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).
