Definition of cost / continuous running costs of a procedure: "The applicable costing method where products or services originate from a series of continuous or repetitive operations or processes
Used in a place where no separate units can be identified in the production or workplace, usually due to the continuous nature of the production processes, is the frequent (but not indispensable) identification of the process calculation that is continuous production, such as the following. o Food Production
o Food and Beverages
which are different from the particular cost accounting methods such as job cost or batch cost, are the following: The output of a process is the input of a subsequent processing unit to produce a completed product
2. Production the continuous nature of processes means that there is usually a closing job that needs to be evaluated. When calculating the cost of the process, it is not possible to estimate the cost of each allowance as the ongoing production is an indistinguishable homogeneous mass.
3. It is often unprofessional in the process as damage, waste, evaporation and so on.
4. Productive production can be a single product, but may be by-products (or products) and common products.
Process Cost Framework
The process cost consists of four steps. The exact work done in each step depends on the circumstances of the question, but the approach can always be used.
first Determination of Output and Loss
o Specified Expected Output.
o Calculate normal loss and abnormal loss and gain.
o Calculate equivalent units when closing or opening work is in progress.
2nd Calculation of Emissions, Losses and Work Costs Per Unit
o Calculating Cost per Unit or Cost per Unit.
3rd Step 2: Full Accounts
o Download the Process Account.
o Write other accounts in question, such as abnormal loss / profit accounts, debris accounts, and so on.
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