ECONOMICS

Detailed explanation-1: -Process costing systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine. Q. Equivalent units of production must be calculated before the unit production costs can be computed.

Detailed explanation-2: -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-3: -Job order costing is a costing method which is used to determine the cost of manufacturing each product. This costing method is usually adopted when the manufacturer produces a variety of products which are different from one another and needs to calculate the cost for doing an individual job.

Detailed explanation-4: -Process costing systems are used only by companies that manufacture physical products; companies that provide services do not use process costing. In a process costing system, companies typically end each period with only Finished Goods Inventory.

Detailed explanation-5: -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.