Question

In 200 words or more, What are the main differences between job, process, and activity-based costing? Original work please

Answer 1

Answer:  

Employment costing is tied in with deciding the expense of a specific occupation along these lines, this is by and large improved the situation single occupation. Process costing then again is only about figuring of expenses related with a specific procedure which is a fundamental piece of generation.

Movement/Activity based costing is totally unique as it is tied in with finding the right cost pool and related cost drivers to join costs with cost pools. Occupation cost is applicable for individual contracts and particularly work contracts while process costing is for the most part utilized in industrial facilities that deliver items which require number of preparing before finishing. Be that as it may, for movement base costing administration must recognize the cost pool and cost drivers to distribute the overheads accurately.

1. Which means:

Job costing can be characterized as a procedure of ascertaining the expense of an extraordinary contract, work arrange where work is executed according to customer's or client's directions.

Process costing technique can be characterized as a procedure in which the costs which are charged to different procedures and tasks is determined.

Action based costing is an elective methodology that takes a gander at business exercises and distinguishes the related expenses. Those expenses are then allocated dependent on how a predetermined movement is devoured during the time spent generation

2. Nature of item:

Job costing incorporates tweaked generation.

Process Costing and ABC incorporates institutionalized creation

3. Extent of cost decrease:

Scope of cost decrease in Job costing is less, while it's high in Process Costing and ABC.

4. Character:

Each activity is not quite the same as another in Job costing, though items are made sequentially, along these lines they lose their personality in Process Costing.

ABC allocates the every movement cost with assets to all items and administrations according to the genuine utilization by each

5. Industry Type:

Job costing is favored for the businesses which fabricates items according to client's structure, the Process costing is reasonable for the business where large scale manufacturing is done, and ABC costs is appropriate in vitality industry thinks about.

Process costing is less precise however more shortsighted than ABC