Answer:
Job order cost system is a system of tracking costs for a specific job, project, or order. This system is typically used by companies that produce customized products or services, where each job requires different materials and labor costs. The cost of each job is tracked separately, allowing for accurate cost estimation and pricing.
On the other hand, process order cost system is a system of tracking costs for a specific process, such as a manufacturing process. This system is typically used by companies that produce standardized products in large quantities. The cost of each process is tracked separately, allowing for accurate cost estimation and cost control.
In terms of which system is easier to understand, it depends on the company's operations and their specific needs. Job order cost system is more flexible and adaptable to different types of projects, but it requires more time and effort to track costs for each individual job. Process order cost system is less flexible, but it is easier to track costs for large-scale production runs.
In conclusion, both job order cost system and process order cost system have their own advantages and disadvantages. The choice between the two depends on the nature of the company's operations and their specific needs.
Step-by-step explanation: