Dictionary.net

The determination of the total unit cost of the production of good that is subject to a production run whereby the product goes through various processes. The steps involved are (1) The estimated number of products passing through a particular process per specific period of time is used to determine the 'total cost per process (2) Dividing the total cost per process by the number of units passing through the process gives the'unit cost per process', (3) each unit is charged with the 'unit cost per process' and the charges are accumulated over the various processes.