A major difference between job order costing and process costing is the treatment of nonmanufacturing costs.

Question

Quizplus · Accepted Answer

Both job order costing and process costing systems typically only include manufacturing costs (direct materials, direct labor, and manufacturing overhead) in the product costs. Nonmanufacturing costs (like selling and administrative expenses) are not treated differently between the two systems; they are usually expensed in the period incurred for both costing methods.

A Major Difference Between Job Order Costing and Process Costing