Investigate process costing accounting in at least one country outside of the United States. What are the reporting requirements, if any? What company that would use process costing.
Research the history of process costing in the United States. When did it begin to be used in manufacturing companies? What type of company would use a process costing system?
Process Costing is the "method of assigning production costs to units of output (eNotes, 2013)."
The history of costing itself started back in 1850s and 1860s in the USA by accountants in the railroad industry. Cost accounting was one of three related types of accounting. Financial, capital, and cost accounting all worked together to produce an analysis as to how companies were doing. It has to do with the values of products, how much capital is involved , and how to account for repairs and renewal of capital (eNotes, 2013).
In the 1870s, the largest US manufacturing firms - textile producers - came into existence. The 1870s were lean years and manufacturers wanted to pay particular attention to costs so they could control them. "In 1886, Lyman Mills, one of the country's largest textile producers, began to determine unit costs for its various products (eNotes, 2013)." Additionally, ...
Approx 600 words
Covers the history of Process Costing in USA
Gives websites for selecting a country outside USA
and what product and process costing is used.
3 Reference Websites included