Similarities between job order and processing costing

Similarities between job order and processing costing -...

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Similarities between job order and processing costing Both assign material, labor, and manufacturing overhead costs to products Both use the same basic manufacturing accounts including manufacturing overhead, raw materials, work in process, and finished goods The flow of costs through the manufacturing accounts is basically the same in both systems. Differences between job order and processing costing Process costing is used when a company produces a continuous flow of units that are indistinguishable form one another while job order costing is used when company makes different jobs that require unique production Under process costing, it makes no sense to try to identify materials, labor, and overhead costs with a particular customer order, since each order is identical. Process costing accumulates costs by department and assigns these costs uniformly to all units that pass through the department that period. While, job cost are not used to accumulate costs. Process costing systems compute unit costs by department while job order
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This note was uploaded on 09/30/2009 for the course MISCELLANE 123 taught by Professor Torres during the Spring '09 term at Rochester.

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Similarities between job order and processing costing -...

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