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What is difference between Job Costing & process cocting?

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Job Costing:

Cost accountants accumulate cost information differently depending on the type of costing system used. Job costing systems incorporate the use of job cost sheets. Each job cost sheet lists the quantity and cost of materials used on the job, the labor hours and labor rates invested in the job and applies an overhead rate to the job. At the completion of the job, the cost sheet totals the cost of the materials, labor and overhead to determine the total cost of that particular job.


Process Costing:

Process costing systems create bills of materials for each product. The bill of material uses an average quantity and cost for each material based on the total materials used and the number of units produced. The bill of material calculates the labor cost by totaling the labor hours multiplied by the labor rates and dividing this amount by the total units produced. An overhead rate is applied to each unit. The material, labor and overhead costs are totaled to attain a total unit cost.

 



  • Cost accountants accumulate cost information differently depending on the type of costing system used. Job costing systems incorporate the use of job cost sheets. Each job cost sheet lists the quantity and cost of materials used on the job, the labor hours and labor rates invested in the job and applies an overhead rate to the job. At the completion of the job, the cost sheet totals the cost of the materials, labor and overhead to determine the total cost of that particular job.




  • Cost accountants accumulate cost information differently depending on the type of costing system used. Job costing systems incorporate the use of job cost sheets. Each job cost sheet lists the quantity and cost of materials used on the job, the labor hours and labor rates invested in the job and applies an overhead rate to the job. At the completion of the job, the cost sheet totals the cost of the materials, labor and overhead to determine the total cost of that particular job.


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