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Which of the following is a difference between job order costing and process costing systems?

coleshear

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Which of the following is a difference between job order costing and process costing systems?

Which of the following is a difference between job order costing and process costing systems?

▸ Companies that use a job order costing system assign manufacturing overhead as part of the cost of production, while companies that use a process costing system omit manufacturing overhead in product cost.

▸ Companies that use a process costing system mass-produce identical products, while companies that use a job order costing system produce many different types of products.

▸ Companies that use a process costing system accumulate direct material and manufacturing overhead, but not direct labor while companies that use a job order costing system accumulate direct material, direct labor, and manufacturing overhead.

▸ Companies that use a process costing system accumulate product costs throughout the production process, while companies that use a job order costing system accumulate product costs only at the end of the production process.

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Managerial Accounting

Managerial Accounting

Edition: 4^th

Author: Davis

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