Question

Job costing and process costing systems share the same objective of estimating product costs.

a-true
b-false

Answer 1

False. Job costing and process costing systems have different objectives and approaches.

Step-by-step explanation:

False. While both job costing and process costing systems estimate product costs, they have different objectives and approaches. Job costing is used for custom-made or unique products and assigns costs to each individual job or project. Process costing is used for identical or similar products produced in large quantities and assigns costs to each process or department.

For example, in a job costing system, the cost of materials, labor, and overhead would be tracked for each specific job. In a process costing system, the costs would be accumulated for each process or department, and then divided by the number of units produced to determine the average cost per unit.