ath p ESTION 5 Using your om words define and dscuss what is

ath: p ESTION 5 Using your om words, define and dscuss what is meant by \"Job Order Costing\" ih managerial accounting Prosent two example of indusres that would lke iplement a Job Order Costing system BE SPECIFIC Pesent two era ples of ndtew ??-,mpl edap em confgun Using your own words, define addscuss what is meant by Process Costing BE SPECIFIC B i managealacco ring TTT Arial Path p

Solution

A)

In job costing system all the relevant manufacturing costs are assigned to a specific job. In this method, specific costs are allocated to the unique jobs. Job Costing is used by industries where each job is unique in nature, for example, shipbuilding companies, software development companies etc. where each requirement of ships and software are unique and hence job costing needs to be used to track the cost of each job.

B)

Process costing is used to assign manufacturing costs to all the identical units produced. Process costing is used by companies in which there is mass production of identical units such as FMCG companies, Automobile companies etc. In there companies products are similar and hence costs are assigned using process costing.