ECONOMICS

Detailed explanation-1: -Similarities between Process Costing and Job Order Costing Both process costing and job order costing maintain the costs of direct material, direct labor, and manufacturing overhead. The process of production does not change because of the costing method. The costing method is chosen based on the production process.

Detailed explanation-2: -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-3: -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.