Accounting for Process Cost Systems in New Zealand

Skinner (1978) observed a gap between process costing as described in the textbooks and process costing as carried out in Australian and UK companies. Very little research has been published on this topic since that date. Skinner's study is replicated in this paper in a New Zealand environment. It found that the equivalent units calculation is now more common than it used to be, one reason being the adoption of Enterprise Resource Management systems, which provide fuller information than the periodic inventory systems they replaced