Process Costing

Process costing is a cost accounting method used to assign production costs to mass-produced goods. This method is usually used in large manufacturing companies but is not limited to these alone. Process costing takes into account both direct and indirect costs associated with producing products. Both completed and in-process goods maybe considered in this method. The main takeaway of this method is that companies can quantify their production through an inventory and evaluate their production costs. Know more on process costing through our various resources in this segment.