1 of 6

PROCESS COSTING

K.MATHANKUMAR,

Assistant Professor,

PG and Research Department of Commerce,

C.P.A College,

Bodinayakanur.

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​

2 of 6

MEANING OF PROCESS COSTING

  • Process costing is method of costing used to find out the cost of the product in each process.
  • It is used to calculate cost per unit of product is ascertained at each stage of production.
  • It is a form of Operations costing
  • Process costing is used in industries like Biscuit work, Paper Mills, Oil refining

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​

3 of 6

MIND MAP OF PROCESS COSTING

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​

4 of 6

01

Homogeneous Products

02

Continuous production

03

Finished output of one process becomes the raw material of the next process.

04

Different products with or without by products are produced simultaneously.

The main features of process costing

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​

5 of 6

05

Output is uniform and identical

06

The output of last process is transferred to finished stock account

07

Cost control is possible because of standardized and stable production

08

Sometimes normal wastage, abnormal wastage and abnormal gain occur.

The main features of process costing

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​

6 of 6

THANKING YOU

K.MATHANKUMAR, Assistant Professor, PG and Research Department of Commerce C.P.A College Bodinayakanur.

​