Process costing is a method of costing applied to production when the process is carried out in a series of chemical or operational stages. The finished output at one stage of production becomes the input for the next stage in the process. At the end of all the stages the completed production is sold or transferred to finished goods stock. This type of production is often found in chemical works, oil refineries and paint manufacturers.
KeywordsProcess Cost Average Cost Management Account Normal Loss Equivalent Unit
Unable to display preview. Download preview PDF.