Prozessrechnungsaufnahmen

Prozessrechnungsaufnahmen, often translated as process accounting entries or process cost accounting, is a method used in cost accounting to determine the cost of producing goods or services that are manufactured or processed in a continuous flow or in large batches. This approach is particularly suited for industries such as chemical manufacturing, oil refining, food processing, and paper production, where identical or very similar units are produced in large quantities.

The core principle of Prozessrechnungsaufnahmen is to accumulate costs for a specific period or production run and then divide these total costs by the number of units produced during that same period. This results in an average cost per unit. Unlike job costing, where costs are tracked for individual jobs or custom orders, process costing focuses on the aggregate costs of a production department or process.

Key elements include the concept of equivalent units, which are partially completed units that are converted into their equivalent whole units for cost calculation purposes. This allows for a more accurate allocation of costs when production is ongoing and units are at various stages of completion. Costs are typically accumulated by department or by process. As products move from one department to another, their accumulated costs are transferred along with the physical units. This provides a clear picture of the cost buildup throughout the production cycle. The ultimate goal is to assign costs to both completed units and work-in-process inventory.