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Bangalore University Study Mate

PROCESS COSTING- Introduction

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 Introduction
Some products take a long time for being manufactured. Such time taken in their
respective industries can also be identified under several stages and these stages
are called processes.
Meaning and definition
Meaning
Process Costing is a method of costing which is applicable to industries where the
production of goods or conversion of raw materials into finished goods takes a long
time and the duration can be split into several distinct stages. Such industries are
also called process industries.
This method enables the industry to calculate the cost of the materials in the process
of production at each stage. The production in such industries is a continuous flow.
Definitions of Process Costing
“Process Costing is that form of operating costing which applies where standardized
goods are produced.”

 


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