Homework SourseDistinguish between job and process costingSolutionDifferenc
Distinguish between job and process costing
Solution
Difference between Job Costing and Process Costing
SL No.
Basis
Job Costing
Process Costing
1)
Definition
Job costing is a method of costing for a project specific cost determination.
Process costing is a method of costing for product processed through various continuous processes to get final product.
2)
Nature of Product
Used for Unique Product.
Used for Standardized Product.
3)
Records
More record keeping is required for cost incurred for each and every specific job separately.
Its generally aggregates costs so less record required.
4)
Size
It is used for very small size production run.
It is generally used for large production run.
5)
Uses
It is generally used for specific job quotation or customer billing.
It is generally used for getting cost for different process of the final product.
| SL No. | Basis | Job Costing | Process Costing |
| 1) | Definition | Job costing is a method of costing for a project specific cost determination. | Process costing is a method of costing for product processed through various continuous processes to get final product. |
| 2) | Nature of Product | Used for Unique Product. | Used for Standardized Product. |
| 3) | Records | More record keeping is required for cost incurred for each and every specific job separately. | Its generally aggregates costs so less record required. |
| 4) | Size | It is used for very small size production run. | It is generally used for large production run. |
| 5) | Uses | It is generally used for specific job quotation or customer billing. | It is generally used for getting cost for different process of the final product. |
