Process Costing:
Process costing is a method used to determine the cost of producing a product by assigning costs to each stage of the production process. It is commonly used in industries where products are mass-produced in a continuous flow.

Features of Process Costing:
- Costs are accumulated by department or process.
- Costs are assigned to units of production based on the average cost per unit.
- It is suitable for industries with continuous production processes.
- It helps in determining the cost of each process or department.

Advantages of Process Costing:
1. Cost Control: Process costing helps in tracking costs at each stage of production, allowing for better cost control and management decisions. This helps in identifying areas where costs can be reduced and efficiency can be improved.
2. Cost Allocation: Process costing allocates costs to each unit of production based on the average cost per unit, providing a more accurate reflection of the cost of production. This helps in pricing decisions and evaluating the profitability of products.
3. Inventory Valuation: Process costing helps in valuing inventory accurately by assigning costs to units of production at each stage. This ensures that the inventory is properly valued on the balance sheet, giving a true picture of the company's financial position.
In conclusion, process costing is a valuable tool for industries with continuous production processes as it helps in cost control, cost allocation, and inventory valuation. By implementing process costing, companies can make informed decisions to improve efficiency and profitability.