ECONOMICS

Detailed explanation-1: -Process costing is widely used in industries such as oil refining, food production, chemical processing, textiles, glass, cement and paint manufacture.

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: -Process costing is a method of costing used mainly in manufacturing where units are continuously mass-produced through one or more processes. Examples of this include the manufacture of erasers, chemicals or processed food.

Detailed explanation-4: -Examples of companies that use process costing include Chevron Corporation (petroleum products), the Wrigley Company (chewing gum), and Pittsburgh Paints (paint). A job costing system2 is used by companies that produce unique products or jobs.