CHAPTER 3 - Costing Methods II: Continuous Operating Costing

Abstract

According to CIMA, Continuous operation costing is defined as the costing method applicable where goods or services result from a sequence of continuous or repetitive operations or processes. Under this method, costs are averaged over the units produced during the period, being initially charged to the operation or processes.  The main focus of this definition is that continuous operation costing is to establish the average cost for unit during a specific period for a number of identical cost units.