Process costing
You'll learn how process costing works and why it's essential for businesses producing goods continuously. This video covers the four key steps: determining output and losses, calculating cost per unit using the net cost of inputs divided by expected output, valuing the output and any abnormal items, and completing
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Process costing fundamentals and real-world applications
- 2:18 Four key steps in process costing methodology
- 3:03 Step one: Determine output and losses
- 3:50 Step two: Calculate cost per unit
- 4:29 Step three: Value output and losses
- 4:55 Step four: Complete process accounts
- 5:37 Simple example with no production losses
- 8:31 Cost per unit calculation and formula
About this lesson
the process account. You'll see how to handle normal losses, abnormal losses, and abnormal gains, then work through a practical example to see the method in action. Whether you're tackling multiple choice questions or longer-form assessments, mastering this technique will give you confidence in costing continuous production environments.
Duration: 10m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Management Accounting course
All 87 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in