Similarities and Differences between Job Order Cost and Process Cost Systems

Similarities and Differences between Job Order Cost and Process Cost Systems

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SIMILARITIES AND DIFFERENCES BETWEEN JOB ORDER COST AND PROCESS COST SYSTEMS In a job order cost system, companies assign costs to each job. In a process cost system, companies  track costs through a series of connected manufacturing processes or departments, rather than by  individual jobs. Thus, companies use process cost systems when they produce a large volume of 
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Unformatted text preview: uniform or relatively homogeneous products. Illustration 16-3 shows the basic flow of costs in these two systems. Illustration 16-3 Job order cost and process cost flow The following analysis highlights the basic similarities and differences between these two systems....
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