Period costs are expensed as incurred, rather than going into the Work in Process account

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Process costing is used in situations where identical or similar products are mass-produced, while job-order costing is used when products are customized to the specifications of a particular customer. In process costing, period costs such as salaries, rent, and advertising are expensed as incurred, while in job-order costing, these costs are allocated to specific jobs or projects.

Period Costs Are Expensed as Incurred, Rather Than Going into the Work