What are the features of process costing.

      

What are the features of process costing.

  

Answers


Martin
- The unit cost of a product or service is obtained by assigning total costs to many identical or
similar units.

- Units are usually required to pass through a number of processes. The degree of completion is
usually determined at the end of each process fore purposes of cost assignment.

- Allowances are normally made for abnormal gains and losses, scraps and work- in- progress
at the end of each process.

- A process account is prepared for each process.

- Units normally move from one process to another in mass and thus it becomes impossible to
identity individual units. Average costing is therefore used to absorb costs to units.
marto answered the question on February 26, 2019 at 09:36


Next: Give the functions of budgets.
Previous: Factors influencing cost estimation method used by a manufacturing company

View More CPA Cost Accounting Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions