Process costing is the most constantly use costing method in industries. Why is this?© BrainMass Inc. brainmass.com June 4, 2020, 2:14 am ad1c9bdddf
Process costing refers to a costing method that is used when a single product is produced on a continuing basis for a long period of time (Brewer, Garrison, & Noreen, 2007, p. 175). Examples of industries that use process costing are petroleum, chemical, oil refinery, textiles, and food processing industries (Anonymous, 2007). Many industries convert raw materials into uniform products such as bricks, soda, or paper into finished products on a continuous basis and therefore, it is appropriate to use process costing in an industrial setting (Brewer, Garrison, & Noreen, 2007, p. 175). In addition, process costing is used in industries rather than job-order-costing because when it comes to cost accumulation, process costing is simpler to use than job-order costing. For instance, when ...
This solution discusses process costing in industries.