In process costing it is not possible to trace costs to individual units.All that is required is to determine the cost of an average unit.Process costing systems accomplish this task by:

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Process costing systems accumulate all costs by department or process in order to determine the cost of an average unit. This is because in process costing, it is not possible to trace costs to individual units due to the nature of the production process. Allocating costs based on a pre-determined rate or accumulating all costs on a job cost report are not effective methods in process costing. Waiting until all products are completed and calculating the actual cost at that time is not efficient and can result in delays in reporting.

In Process Costing It Is Not Possible to Trace Costs