Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 16

What is the main difference between journal entries in process costing and in job costing?

Step 1 of 3

Job costing:

Job costing refers to the calculation of cost of a product or service which is done as per the client’s need. In job costing standardized products are produced and costing is calculated on per job basis.

Process Costing:

Process costing refers to the calculation of cost based on process used in the manufacturing process. In process costing homogeneous products are produced and cost is calculated department wise or process wise.