Question

The key distinction between job costing and process costing is:

A. The difference in detail required by each approach.
B. The use made of the collected data.
C. The journal entries required.
D. The accumulation of costs to assign to cost objects.
E. The standards applied.

Answer 1

The key distinction between job costing and process costing is the accumulation of costs to assign to cost objects. Job costing is used when products or services are unique or customized, while process costing is used when products are mass-produced or standardized.

Step-by-step explanation:

The key distinction between job costing and process costing is the accumulation of costs to assign to cost objects. Job costing is used when products or services are unique or customized and the costs can be directly traced to each job or project. Process costing, on the other hand, is used when products are mass-produced or standardized and the costs are averaged over the units produced.