Cost Accumulation In Process Costing Assignment Help

Posted on June 4, 2017

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Basically, the process of assuming the cost of individual unit of a product from a large amount of quantity is known as Cost Accumulation. An individual unit is inseparable from another unit by means of cost. For collecting and maintaining a database of the expenses sustained by a business in the course of its operation Cost Accumulation is mainly used in accounting system which is given in Cost Accumulation in Process Costing Assignment Help. Giving high preferences to some important criteria like time period, the cost accumulation can be fixed. The term used for determining the product’s cost at each operation or process or stage of manufacture is known as Process Costing. Generally, Process Costing is implemented in the industries where the production transfers from one process or department to another process or department. Cost Accounting is mostly applicable in industries engaged in continuous manufacturing of large amount of products. In such cases, the units of products are constant and are in differentiable. Cost Accumulation in Process Costing Assignment Help highlights the various features of Cost Accumulation in Process Costing are the cost of the products is determined for their respective process through which the units pass and all the costs relating to the process are charged to a special account and then the average was determined as per the unit cost.
 

Advantages and Disadvantages of Cost Accumulation in Process Costing

 
The several advantages of Cost Accumulation in Process Costing are given in Cost Accumulation in Process Costing Assignment Help
 
• The cost in each and every process and that of the final product at each interval is determined by Cost Accumulation in Process Costing method.
• The standardization of the production of the methods easily determines the average cost of the product.
• Cost Accumulation in Process Costing method facilitates the managerial control and performance analysis to a very great extent due to the availability of cost data in the form of exact and accurate cost reports.
• Cost Accumulation in Process Costing method is used to identify the reasons for profit or loss. Cost Accumulation system reflects the reasons for increasing or decreasing profit.
 
There are various demerits of Cost Accumulation in Process Costing method which are highlighted in Cost Accumulation in Process Costing Assignment Help
 
• Cost Accumulation in Process Costing is unable to solve the problems related to work study, motion study and time and option research.
• The Cost Accumulation data are not really useful since the cost of last year is not same as the cost of the succeeding year.
 

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