ECONOMICS

Detailed explanation-1: -The basic approach in job-order costing is to accumulate costs in a particular operation or department for an entire period (month, quarter, year) and then to divide this total by the number of units produced during the period.

Detailed explanation-2: -It is because in process costing, the costs are identified based on a particular process or department. The job order costing estimates the cost of a particular job. In the case of a business, the number of processing departments will be less, but there will be more jobs under job order costing.

Detailed explanation-3: -When job order costing is used, costs are accumulated on a job cost sheet. Process costing averages the total cost of the process over the number of units produced. Source documents are used to assign all manufacturing costs to jobs. A materials requisition form is used to authorize the purchase of direct materials.

Detailed explanation-4: -Job order costing requires the assignment of direct materials, direct labor, and overhead to each production unit.