Process Costing System
labormaterialsprocess costingjob-costingoverheadunit costs
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Process Costing System is a costing method commonly used in industries that produce uniform products in mass on a continuous basis. Each unit receives the same amounts of direct materials costs, direct labor costs, and manufacturing overhead. Unit costs are computed by dividing total costs incurred by the number of units of output from the production process. It distinguishes Process costing from Job-Costing, records the flow of materials, labor, and overhead through a process cost system, computes equivalent units and cost per equivalent unit for WIP ending, and assigns costs to units completed and units in process.
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- 13.08.2025
