Differences between job costing and process costing

Explain three differences between job costing and process costing

Job costing Process costing
-Suitable where distinctive product/service is manufactured. -Is suitable where units of products are indistinguishable from each other.
-Used where organisations produce products that are tailored to individual customer’s requirements. -Used where organisations produce large amounts of identical units which pass through a number of processes.
-Costs such as materials and labour can be easily traced to individual products. -It is not possible to trace costs to individual units of products.


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