Question

Please new response and not one that is already posted.

What are the major differences between job-order costing and process-costing systems? Give an example of a well-known company that might use job-order costing, and an example of a well-known company that might use process costing. Explain why you have chosen these companies, and do not choose companies that your classmates have already addressed in a post.

Answer 1

Difference between Job Costing and Process Costing:
Major difference	Job Costing	Process Costing
Cost compilation	For each job separately	for each process in a given period
Cost Unit	always "a job"	"a process", being of same size in the production period
Costing process complition	on completion of job where total costs are acertained.	on complication of batch/process where cost is ascertained which same for each process.
Nature of production	different for each job	same for each process, rather continuous
Supervisory and Control	specific control for each job	less control being same pattern and continuous
Orders	Specific orders required	no specific order as product of mass consumption
Examples :	Austal shipbuilding, Boeing company, Airbus Group, etc.	Nestle, Johnson & Johnson, colgate, etc.