ECONOMICS

Detailed explanation-1: -These types of manufacturing are optimal for the process cost system. 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-2: -Typically, job costing includes customer billing to outline the exact cost of each step in the process of a particular job or order. In process costing, costs accumulate by each process or processing department and may not focus on the exact cost of each item in the process.

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: -Operation costing is a mix of job costing and process costing. It may be used when a product initially uses different raw materials, and is then finished using a common process that is the same for a group of products.