Comparison of Job Order Costing and Process Costing

January 2017 | 10 pages | ID: CE3FCDCBCC9EN
Sadia Saeed

Abstracts

The systems of costing are significantly important in management and costing of products and services. Various researchers have conducted research on these two topics. Some companies use the process costing while other uses the job order costing system. The process costing and job order costing is equally important and have their characteristics and attributes. A detailed research was investigated by Novak, P., Popesko, B. (2014) on methods of costing. The cost or price is incurred in construction of services and commodities. The proper management of costs is an essential part of cost management. The growth and development of company extremely relies on the proper management of cost. He described in his research that systems of cost management are considered important in financial management and cost management. There are basically two methods of cost management. One is the job order costing while other is the process costing. Cont... (2000 words of this report)

Contents

INTRODUCTION
Job Order Costing
Process Costing
Similarities among Both Systems
DIFFERENCES
Flow of Products
Identification of Materials
Calculation of Costs
Costing Technique
Nature of Product
Assignment of Cost
Cost Center
Scope of Cost Reduction
Treatment
Transfer cost
APPLICATION OF COSTING SYSTEMS IN VARIOUS BUSINESSES
Conclusion
References