In which method of costing the goods produced are homogeneous in nature production in huge quantity ...........

Costing - Phase (I & II) Methods of Costing

In which method of costing, the goods produced are homogeneous in nature, production in huge quantity, the output of one process becomes the input of next process till finished goods are produced?

Job Costing

Batch Costing

Contract Costing

Process costing

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Explanation:

Process costing: There are many goods that are produced continuously. The goods are homogeneous and are usually produced in huge quantities. In continuous processing, the output of one process becomes the input of the next process and so on until we achieve our finished product. So, cost per unit is calculated by aggregating the costs of each process and divided it by the number of units produced in this process. Some examples of products that use process costing are sugar, edible oil, chemicals, salt etc.