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    Similarities & Dissimilarities of Job and Process Costing

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    Contrast the primary focus of job order cost accounting and of process cost accounting.

    What are the similarities between a job order and process cost system?

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    Job costing is the method of costing in which the cost of completion of a job is added to find out the total cost of the particular job and the resultant profit arising out of the job. Here flow of costs is identified by the job and not by the process involved. Example of Job costing: Manufacturing Company making heavy machines and equipments.

    Job costing is appropriate when each product is unique and the company does the work on the basis of special orders. Each job is unique and is different from other jobs.

    Process costing involves the identification and accumulation of costs by the process involved. Costs are accumulated ...

    Solution Summary

    The answer contains the meaning of job costing, process costing, differences and similarities between job order costing and process oreder costing.

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