ECONOMICS

Detailed explanation-1: -One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job. Separate work in process accounts are maintained for each production department or manufacturing process in a process cost system.

Detailed explanation-2: -The similarities between job order cost systems and process cost systems are the product costs of materials, labor, and overhead, which are used determine the cost per unit, and the inventory values.

Detailed explanation-3: -Both job order and process cost accounting use equivalent units of production to determine costs. Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period. Conversion costs include materials, direct labor, and factory overhead.

Detailed explanation-4: -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.

Detailed explanation-5: -Businesses use job order costing for small batches of customizable or unique products and individual job orders, while businesses use process costing for mass-produced or standardized products. Typically, in process costing, the products produced are the same or very similar.