ECONOMICS

Detailed explanation-1: -Process cost systems are used to apply the cost to similar products that are mass-produced in a continuous fashion.

Detailed explanation-2: -Process costing is an important product costing method for manufacturing companies that mass produce a large volume of similar products or units of output.

Detailed explanation-3: -Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other.

Detailed explanation-4: -Process Costing – The method is used in mass production industries. The raw material passes through a number of processes up to a completion stage. The finished product of one process passed through a number of process for the next process. This method is used in chemical works, sugar mills etc.

Detailed explanation-5: -Unit or Single Costing It is also known as output costing. It is mainly used for manufacturing single products or similar products. This method is used for the costing of coal, brick, oil, drilling, etc.