ECONOMICS

Detailed explanation-1: -This method of costing is applicable where standardised goods or services result from a sequence of continuous operations. Process costing, unit costing, operating costing, operation costing fall under this category.

Detailed explanation-2: -In process costing there are three different ways to calculate costs: weighted average, standard costing and first-in first-out (FIFO).

Detailed explanation-3: -Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

Detailed explanation-4: -The main costing methods available are process costing, job costing, direct costing, and throughput costing. Each of these methods applies to different production and decision environments.

Detailed explanation-5: -THE 5 STEPS FOR PROCESS COSTING Convert the inventory to determine the equivalent units. Identify the total costs. Calculate the average cost per equivalent unit. Allocate these costs to finished units and Work in Process units.