Q88. Write short notes on process costing.
Ans. Process Costing Method is used where input goes into two or more process or operation to convert into finished goods. Each process or operation is separated from other process or operation. Industries where process costing can be applied have normally one or more of the following features:
- Each plant or factory is divided into a number of process.
- Manufacturing activity is carried on continuously by means of one or more process run sequentially, selectively or parallel.
- The output of one process take comes the input of another process.
- The end product usually is like units not distinguishable from another.