- The unit cost of a product or service is obtained by assigning total costs to many identical or
similar units.
- Units are usually required to pass through a number of processes. The degree of completion is
usually determined at the end of each process fore purposes of cost assignment.
- Allowances are normally made for abnormal gains and losses, scraps and work- in- progress
at the end of each process.
- A process account is prepared for each process.
- Units normally move from one process to another in mass and thus it becomes impossible to
identity individual units. Average costing is therefore used to absorb costs to units.
marto answered the question on February 26, 2019 at 09:36
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