Question

The two basic types of costing systems are

Answer 1

The two basic types of costing systems are:

1.Job order costing system.

2.Process costing system.

1.Job order costing system

This costing system measures and recognises the costs of direct labor,direct materials and overheads to a specific batch of products or a specific job order.

2.Process coting aystem

This system first traces the costs of direct labor,direct materials and overheads to processes or departments and then assigns the costs to the products manufactured by those processes or departments.