ECONOMICS

Detailed explanation-1: -The primary difference between the two costing methods is that a process costing system assigns product costs-direct materials, direct labor, and manufacturing overhead-to each production department (or process) rather than to each job.

Detailed explanation-2: -Process costing is a costing method or an operational type of costing in which a manufacturer tracks the cost of production of a sequence of continuous or repetitive processes required to produce a product.

Detailed explanation-3: -Transferred-in costs are the costs accumulated by the product at any given point in production. They are “transferred in” to the new business department that receives the partially finished product and is responsible for continuing the production process.

Detailed explanation-4: -Process costing is used when output is produced in a continuous process system, and it is difficult to separate individual units of output.