oboloo Glossary

Process Costing

oboloo Glossary

Process Costing

Process Costing is an accounting method used to track the costs associated with producing a specific good or unit of service. By keeping thorough records of each stage in the production process, companies can accurately determine the cost of each product or service and make the necessary adjustments to maximize their profits. Process Costing provides organizations with invaluable insights into their production processes, enabling them to identify areas for improvement, better manage resources and work towards reducing wastage. With greater visibility over their accounts, businesses can confidently set achievable pricing strategies that are both competitive and profitable.