Archive | Process Costing

Process Costing: Definition and Features | Cost Accounting

In this article we will discuss about:- 1. Definition of Process Costing 2. Features of Process Costing 3. Process Losses and Gains. Definition of Process Costing: CIMA defines Process Costing as “the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes, costs are averaged over the […]

Difference between Job Costing and Process Costing

Learn about the differences between Job Costing and Process Costing. Difference # Job Costing: 1. Production of Goods: Goods are produced against specific orders. 2. Cost Collection: Costs are accumulated for specific cost centre i.e. a specific job. 3. Applicability: Job costing is applicable where the objec­tive is to identify the cost with specific job. […]

Valuation of Opening Work-in-Progress

The following points highlight the two methods of valuation of opening work-in-progress. The methods are: 1. FIFO Method of Valuation 2. Average Cost Method of Valuation. Valuation of Opening Work-in-Progress: Method # 1. FIFO Method of Valuation: Under this method of valuation it is assumed that units are dealt with on a first-in-first-out basis which […]

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