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Cost accumulation-definition,methods and steps

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Briefly describe and draw a diagram of the cost accumulation process for a traditional manufacturing company.

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Solution Summary

The answer contains the definition of cost accumulation, methods of cost accumulation and steps in the cost accmulation in the traditional manufacturing company.

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Cost Accumulation:
Meaning:
Cost Accumulation means the adding up of the cost incurred from the beginning of infusion of raw material till the production of finished product.
Definition:
Cost accumulation: The process of collecting costs as a product progresses through the production system, enabling the total cost of manufacture to be built up in a sequential fashion.
Methods of cost accumulation:
Job costing and process costing are the methods used for ascertaining the cost accumulation. If the products are produced on large scale and the products are of uniform, then process costing is used to accumulate the cost from the beginning department to the ending department. If the produce is unique and each ...

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