concept of Qutput costing
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Unit or output costing is a method of costing, which is applied in those undertakings where units of output are identical and the cost units are physical and natural. It is ideally used in those concerns, which produce only one product or two or more grades of one product in large scale continuously.
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Output Costing – Definition. Output costing is an analysis of the different elements of expenditure so as to find out the factory cost, office cost and total cost per unit. The per-unit cost is arrived at by dividing the total expenditure by the quantity produced.
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