How do job costing, operations costing and process costing differ? Provide two typical examples of products or organizations for each system.
How do job costing, operations costing and process costing differ? Provide two typical examples of products or organizations for each system
Job costing means the computation of cost of each job undertaken by the company.
Job costing is the order specific technique where each job is unique and is done by the firm according to the specifications of the customer.
Industries which use job costing are: construction companies (construction of building, dam, and bridge), shipping companies (construction of ship), motion picture, etc.
Job costing helps to compute the cost of job by adding direct material, direct labor, direct overhead and the certain percentage of indirect overhead allocated on direct labor or some other basis.
Operations costing is the mixture of job-order and ...
The answer contains the detailed explanation regarding defnintion of job costing, process costing and operations costing, typed of industries which uses these three costing system and also differences between the job costing, process costing and operations costing has been explained.