Question

1. Differentiate between job costing and process costing with your own examples.

1. Differentiate between job costing and process costing with your own examples.

Answer 1

Job order costing : Job order costing is used by companies where each product produced is different from other. In other words, where each job/product is provided as per customer requirements   Examples are custom home builders, law firms, custom cloth designers

Process costing : Process costing is used when a large number of homogeneous products are to be produced by the company Examples are cookie manufacturing company, paint making company.