Process costing system is an accounting term that describes a method of determining the manufacturing costs of units manufactured. The treatment is typically used when similar units are mass-produced. Process costing system is also a type of accounting process costing that is used to determine the cost of a product inventory. The Chartered Institute of Management Accountants (CIMA) defines process costing as “the method of costing applicable when goods or services result from a sequence of continuous or repetitive operations or processes. Costs are averaged over units produced during the period, being initially allocated to the operation. or process" (College Accounting Coach, 2007). Process costing is more important and appropriate for all companies producing identical products during which production is a continuous flow. Toyota is among the large companies in the world that used a well-known new philosophical management to produce identical products using process costing system. During this project, I will mention the details of the TOYOTA production process system which was developed more than 40 years ago. years ago by Taiichi Ohno, then president of Toyota Motor Company The production system that Toyota Company uses today and before is relevant to the concept of process costing system that is currently. used in all departments of the company For more than 40 years, Toyota company has been thinking about how to develop the traditional process costing system and production system. Some companies believe that increasing production is a big profit, while Toyota has proven otherwise. The more you increase products according to market needs, the more losses you will incur. This kind of... middle of paper ......ota Production System (TPS) requires that the final product be removed through the process system. This means parts arrive on the assembly line in the right place whenever they are needed. This represents a final elimination of the traditional system, which requires a large warehouse and storage in order to push the product as much as possible through the production lines, regardless of the actual product requirements. Works Cited “College in Accounting”. Process Costing - Definitions and Characteristics (Part 1) “Process Costing “Cost Accounting”. February 2007. Web “Toyota Production System: Beyond Large-Scale Production.” » Google Books. Internet. March 17, 2014. “Toyota Production System.” Toyota Australia. Internet. March 16, 2014.Artoflean. “Toyota Production System Manual”. 1993. Web.Http://www.artoflean.com/files/Basic_TPS_Handbook.