For example a business might use job order costing to price a customers unique furniture order which is a small job.

Example of job order costing and process costing. A process cost system process costing accumulates costs incurred to produce a product according to the processes or departments a product goes through on its way to completion. Solved by verified expert. JOB ORDER COSTING.

Process costing on the other hand is used when companies offer a more standardized product. Process costing aggregates costs and so requires less record keeping. Job order costing is a method of assigning costs to a specific unit or product.

Examples of companies that use process costing include Chevron Corporation petroleum products the Wrigley Company chewing gum and Pittsburgh Paints paint. The job order costing requires more record keeping activities than process costing. While in process costing all the costs are aggregated and compiled because all the costs relate to a single process of production.

Examples of companies that use job costing systems include Boeing airplanes Lockheed Martin advanced technology systems and Deloitte Touche. Whereas process costing is the total. Job Order Costing Cycle.

Methods are applied to determine accurate cost data. On 30 April the inventories were as follows. Job costing is more likely to be used for billings to customers since it details the exact costs.

For example if you own a construction company this will include materials such as bricks woods cement wiring etc. Job size is another difference between job order costing and process costing. Job costing is the cost of each job carried during an assignment or project.