Single and output costing

 

Single (output) or unit costing:

It is a method of costing in which cost is ascertained in convenient units of product turned out by continuous manufacturing activity. The unit of costing is chosen according to the nature of product.

This method of costing is used in those industries, in which the production consists of a single product or a few varieties of the same product with variations in size, shape, quality etc. and production is uniform and on continuous basis.

Examples of industries in which this method is commonly used are : Cement, Steel, Sugar, Paper brick works, dairies etc. Cost of units in these industries are a tonne of cement, or steel, or sugar, 1000 bricks, a gallon of milk etc.

This method is also known as single costing.

 

 

 

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