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Why is determining the cost of goods sold problematic in process costing? How is the problem...

Why is determining the cost of goods sold problematic in process costing? How is the problem solved?

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This calculation includes all the costs involved in selling products. Calculating the cost of goods sold for products you manufacture or sell can be complicated, depending on the number of products and the complexity of the manufacturing process.

Input costs from each step of their production process are monitored and then matched against the actual output results generated to measure the company’s overall financial performance.

Process Costing is one type of Cost Accounting that is widely used when the company produces mass homogenous products. Due to this, the costs of individual units of output cannot be differentiated from each other.This is because there is no quantifiable way to give each unit an individual cost when thousands of the same product are produced every hour

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