Accounting International Marketable Securities Standard

Costing is an important process that many companies engage in to keep track of where their money is being spent in the production and distribution processes. Understanding these costs is the first step in being able to control them. It is very important that a company chooses the appropriate type of costing system for their product type and industry. One type of costing system that is used in certain industries is process costing. Process costing varies from other types of costing (such as job-order) in some ways, yet is similar in other ways.

What Is Process Costing?

Process costing is a type of costing system that is used for uniform, or homogeneous, products. Process costing averages the costs over all units to come to the per unit cost. This is in contrast to other types of costing systems, such as job-order costing that is used for products that are in differentiated batches. Unlike job-order costing, process costing is tracked using a work-in-process account for each department, rather than through subsidiary ledgers.

Process Costing Procedures

Process costing systems follow specific procedures, and while exact procedures may vary by company or by industry, they will generally follow these steps:

• Entry Level Accounting Job

  Find Entry Level Accountant jobs, post your resume and find career tools at EntryLevelAccountant.com.

• Accounting Variances

• History Of Accounting Regulation

• Major Accounting Firms

• Accounting Estate Real Software

  In the dawn of the new millennium, more innovative technologies have been launched. Unmistakably, it has added more value to the contemporary lifestyle. It has been ...