ECONOMICS

Detailed explanation-1: -A job order cost system and a process cost system are two alternative methods for valuing inventories. A job order cost system identifies costs with a particular job rather than with a set time period. A company may use either a job order cost system or a process cost system, but not both.

Detailed explanation-2: -Job costing is an accounting method of tracking all the costs and revenue associated with a unique project. Process costing is an accounting method deployed when there is mass production of similar products by collecting and assigning manufacturing costs to the units produced. Customized. Standardized (Mass Produced).

Detailed explanation-3: -What is job order costing and process costing? Job order costing is a costing system in which each product or job has traceable costs. Process costing is a costing system in which a product is mass produced, so costs are determined by equivalent units produced.

Detailed explanation-4: -Your business can use job order costing and process costing to track production costs and allocate expenses, such as time, materials and labor, to your products, and both use about the same information to calculate unit cost.