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what is the defination of unit costing and process costing?
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Answer Posted / krish
When identical units of single product line are produced
through single manufacturing line all the costs are to be
allocated to that manufacturing line and then averaged and
absorbed by each unit of final product the system used for
averaging is called unit costing. On the other hand when
identical units units are produced via multiple manufacturing
processes cost of each process is first accumulated and then
cost of each process is averaged and absorbed by each unit of
final product the system used for averaging is called process
costing.
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