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Process costing involves tracking the number of units passing through the production process during a given period, collecting cost information for each stage and then using the collected information to calculate per-unit cost.
Process Costing, also called job-order costing, assigns total manufacturing costs to the units being produced. Process Costing is a system of product cost allocation used in merchandising and industry.
Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other. In other words, the cost of each product produced is assumed to be the same as the cost of every other product.
Process costing is a method wherein the products go through two or more processes. The costs are assigned/charged to individual processes or operations, averaged over the number of units produced during the said period.
Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.
Process costing is a vital tool companies and production supervisors use to track product costs in industries that deal with mass amounts of produced goods and are subject to regular price fluctuations due to process and multiple production lines.
Process costing is a cost accounting system for calculating the manufacturing costs (direct materials, direct labor and manufacturing overhead) of similar or identical products that are mass produced through a continuous process or series of processes.