Discuss several aspects that differentiate the process costing system from job order costing system.

Discuss several aspects that differentiate the process costing system from job order costing system.

Expert Solution

JOB ORDER COSTING	PROCESS ORDER COSTING
HETEROGENEOUS JOBS.	HOMOGENEOUS JOBS.
MANY DIFFERENT JOBS ARE WORKED IN DIFFERENT PERIODS.	A SINGLE IS PRODUCED EITHER ON CONTINUED BASIS OR ON LONG TERM PERIODS.
COST ACCUMULATED JOB WISE.	COST ACCUMULATED DEPARTMENT WISE.
IT INVOLVES MORE PAPERWORK.	IT INVOLVES LESS PAPERWORK.
NOT WELL SUITED TO LARGE SCALE PRODUCTION.	SUITED FOR LARGE SCALE PRODUCTION.
COST SHEET IS THE KEY DOCUMENT.	DEPARTMENT PRODUCT REPORT IS THE KEY DOCUMENT.
PRODUCTION IS NOT FOR STOCK.	PRODUCTION IS FOR STOCK.
WORK IN PROGRESS MAY OR MAY NOT EXIST .	WORK IN PROGRESS ALWAYS EXIS

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ekkarill92 answered 1 year ago

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