Following are the main features of process costing:
* In process costing, each factory/department work , plant or division is considered as separate cost center.
* Processing work is carried on continuously by means of one or more process.
* The output of one process is passed on to the next process as an input till the finished goods are realized.
* The finished goods are normally of a common size of mass volume.
* The output is not possible to be differentiated from the input lot or batch as in edible oil with the lot of oil seed fed for crushing.
* Production of finished goods incidentally may give by-products lie oil cake in oil mills and bagasse of solid waste product and molasses of semi-liquid sweet product in a sugar industry.
* In process costing, each factory/department work , plant or division is considered as separate cost center.
* Processing work is carried on continuously by means of one or more process.
* The output of one process is passed on to the next process as an input till the finished goods are realized.
* The finished goods are normally of a common size of mass volume.
* The output is not possible to be differentiated from the input lot or batch as in edible oil with the lot of oil seed fed for crushing.
* Production of finished goods incidentally may give by-products lie oil cake in oil mills and bagasse of solid waste product and molasses of semi-liquid sweet product in a sugar industry.
0 comments:
Post a Comment