|Methods of Costing|
Depending on the nature of the business i.e. the type of the product made and the procedure adopted to make it, all the different costing methods are classified as
|Techniques of Costing|
Techniques of costing imply tools that are to be used to apply a method of costing.
In accounting for costs using a particular method of costing as mentioned above, any one or more of the techniques of costing are used by the organisation
The various techniques of costing are
|Process Costing » Method and Techniques|
Process Costing is a technique of costing and it may be adopted using any of the techniques of costing.
The technique adopted would decide the procedure adopted in relation to various accounting aspects. For example, for the purpose of valuation of stocks
Example of an area where Process Costing is appliedA common example of an industry where process costing may be applied is "Sugar Manufacturing Industry".
The processes in this industry are
|Features/Characteristics of Process Costing|
Process Costing Method is applicable where the output results from a sequence of continuous or repetitive operations or processes and products are identical and cannot be segregated.
Process Costing enables the ascertainment of cost of the product at each process or stage of manufacture.
The following features may be identified with process costing:
There are a number of industries in which process costing can be applied.
|Author Credit : The Edifier||... Continued Page 2|