The Features of Process Costing and Industries that Use Process Costing

Process costing Accounting
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Process costing is an approach to determining costs in the manufacturing sector as units are produced from one process to the other. The cost per unit depends on the cost of inputs and the expected outputs in units, while there may be loss because of wastage during production. In most cases it is not possible to differentiate the output and inputs. In some cases, there are by-products that are produced that may be saleable, while the outputs of the processes are homogenous. The flow of costs then begins with the work-in progress inventory to the finished goods inventory and cost of goods sold.
When calculating the cost allocation, each division or plant is a separate cost center. In process costing, work processes occur continuously from one process to the next one, while the output of one process be...