ECONOMICS

Detailed explanation-1: -A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory. Process cost systems use job order cost cards to accumulate cost data.

Detailed explanation-2: -Job order costing is used to measure the revenue gained against the expenses incurred during the production process so that we can determine the profit for every unique job which is being manufactured.

Detailed explanation-3: -Job order costing tracks prime costs to assign direct material and direct labor to individual products (jobs). Process costing also tracks prime costs to assign direct material and direct labor to each production department (batch).

Detailed explanation-4: -The quantity of each type of material needed to complete a unit product is listed on a document called the bill of materials (Garrison).

Detailed explanation-5: -A process cost accounting system provides product costs for each of the departments or processes within the factory. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.