Methods of process costing are an accounting method used to track the costs associated with transforming materials and labor into finished goods. This type of costing system is best suited for businesses that produce a large number of similar products, such as manufactured goods or services. In this type of system, the cost of production per unit is calculated by dividing the total cost of production by the number of units produced. This allows businesses to accurately analyze their costs and ensure they are meeting targets and budget objectives. Ultimately, methods of process costing lead to more informed decision-making and efficiency in business operations.