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Costing process

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(Querist)
03 October 2012 Hi All,

please suggest the Process which i need to follow process costing or Job costing.

we are manufacturers of Tipper and Mixer bodies. we have five process
1. Metal forming
2. Body fabrication
3. painting
5. Assembly
4. Quality & inspection
we prepare all parts individual and do assembly the parts final.
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Amol S Joglekar

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Amol S Joglekar (Expert)
03 October 2012 process costing is followed where output of one process is the input for the next process. Dependent activities as is called under PERT/CPM. (Programme evaluation and review technique / Critical path method)The wording suggest that the activities are dependent in a sequence and hence process costing can be made good use of.
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CA Lokesh Pokharna

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CA Lokesh Pokharna (Expert)
03 October 2012 me too in similiar industry, & doing costing work.. both can be employed, but for better results job costing should be adopted... bcoz it gives you analysis order/job wise & stock can also be maintained.
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