A major difference between job order costing and process costing is the treatment of nonmanufacturing costs.In both job order costing and process costing,nonmanufacturing costs are expensed in the period in which they are incurred.

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In job order costing, nonmanufacturing costs are expensed in the period in which they are incurred. In process costing, nonmanufacturing costs are inventoried as indirect costs and are expensed when the related units are sold.

A Major Difference Between Job Order Costing and Process Costing