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Graphical Approach to Process Costing.

F. S. Luh

Lehigh University. 1

The Accounting Review 1967

This focuses on a method which offered a supplementary approach to assist students in understanding the basic concept of process costing and provides a visual display of the interrelationships between physical data and cost data. The traditional approach to the determination of equivalent production, unit cost, and inventory valuation in process costing often gives a number of students difficulties. It is common to find some students at a complete or partial loss in solving a process costing problem because of the large number of variables involved in it. The method proposed in this paper offers a supplementary approach to assist students in understanding the basic concept of process costing and provides a visual display of the interrelationships between physical data and cost data. In process costing, each of the three elements of manufacturing costs--direct material, direct labor and manufacturing overhead--usually consists of two sets of data, physical data and cost data, each with its sub-categories or subsets.

DOI
10.2308/tar-4482203
Volume
42 (3)
Pages
600-604
Language
en
Export
BibTeX
Sources
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