ECONOMICS

Detailed explanation-1: -Thus, a job order cost system is used for custom jobs when it is easy to determine the cost of materials and labor used for each job. A process cost system is often less expensive to maintain and works best when items are identical and it is difficult to trace the exact cost of materials and labor to the final product.

Detailed explanation-2: -What is one main difference between a process cost system and a job order cost system? A process cost system is usually used for a large volume of similar products, whereas a job order cost system is usually used for a small volume of unique products.

Detailed explanation-3: -Process costing is similarly used to track production, however, the key difference is that instead of tracking unique jobs like job order costing, process costing helps calculate total costs for similar units after a large production process.