Question

Differences between job-order and process costing include that process costing: (Check all that apply) A. Accumulates costs by department B. Assigns materials, labor and overhead costs to specific customer orders C. Computes unit costs by job D. Is used for indistinguishable products

Answer 1

Job-order costing and process costing differ in terms of cost accumulation, cost assignment, unit cost computation, and the types of products they are used for.

Step-by-step explanation:

Job-order costing and process costing are two methods used to calculate the cost of production. The main differences between the two are:

1. Accumulation of costs: Process costing accumulates costs by department, while job-order costing accumulates costs by specific job or order.
2. Assignment of costs: Job-order costing assigns materials, labor, and overhead costs to specific customer orders, while process costing assigns these costs to departments.
3. Computing unit costs: Job-order costing computes unit costs by job, whereas process costing computes unit costs by department or process.
4. Products: Job-order costing is used for products that are distinguishable or customized for each customer order, while process costing is used for mass-produced, indistinguishable products.

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