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: -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-3: -What is job order costing and process costing? Job order costing is a costing system in which each product or job has traceable costs. Process costing is a costing system in which a product is mass produced, so costs are determined by equivalent units produced.