RSM222H1 Chapter Notes - Chapter 6-7: Cost Driver, Indian Railways, Activity-Based Costing
Document Summary
Differences: the flow of units in process costing system is continuous, the units in process costing are indistinguishable for one another. In process costing we accumulate costs by department rather than by order and assign these costs to all units that pass through the department during a period. Job cost sheet is not used in process costing since the focal point of the method is departments a. Instead process costing uses a production report a report that summarizes all activity in a department"s wip account during a period and that contains 3 parts: a. i. A computation of total and unit costs a. iii. Processing department any location in an organization where work is performed on a product and where materials, labour or oh costs are added to the product. Can have as few or as many processing departments as are needed to complete a product or service.
