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Essay Details:
Essay text:
CIMA defines process costing as "The costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over the units produced during the period". Process costing is suitable for industries producing homogeneous products and where production is a continuous flow. A process can be referrwed to as the sub-unit of an organization specifically definde for cost collection purpose.
Reasons for use
Companies need to allocate total product costs to units of product for the following reasons:
? A company may manufacture thousands or millions of units of product in a given period of time...
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