ECONOMICS

Detailed explanation-1: -Companies can use a combination of a process costing and a job-order costing system at the same time. One similarity of process costing system with job-order costing system is that both determine total manufacturing costs after each job.

Detailed explanation-2: -Process costing and job order costing are both acceptable methods for tracking costs and production levels. Some companies use a single method, while some companies use both, which creates a hybrid costing system. The system a company uses depends on the nature of the product the company manufactures.

Detailed explanation-3: -The difference between job costing and process costing is that job costing is used for custom products, and process costing is used for mass-produced items that are the same or similar. Job costing tracks all direct and indirect costs for each item or project.

Detailed explanation-4: -So, we can conclude that the standard cost system is used in job order costing. And it is not applicable in process costing. Process costing is the method for calculating the cost of production as per the processes, individual costs cannot be estimated in process costing.