Question

what is the difference between job costing and process costing

Answer 1

Basis of comparison	Job costing	Process costing
meaning	Refers to calculating the cost of a special contract,work order where work is performed as per client’s or customer’s instruction	A method in which the costs which are charged to various processs and operations is ascertained is known as process costing
nature	Customized production	Standardized production
Assignment of cost	Calculating cost of each job	First,cost is determined for the process and thereafter spread over the production units
Cost center	Job	Process
Transfer of cost	No transfer	Cost is transferred from one one process to aother
identity	Each job is different from others	Products are manfatured consecutively and so they loose their identity
Cost assetainment	Completion of job	End of the cost period
Industry type	Suitable for manfacture s products as per customer orders	Perfect for industries where mass producton is done
losses	Not segregated	Normal loss are carefully ascertained and abnormal loss are bifurcated
WIP	Wip may or may not exit at beginning or ending of the financial year	Wip is always exit ar beginning or ending of financial year