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Job costing and process costings rev

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JOB COSTING AND PROCESS COSTING 1
Job Costing and Process Costings
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JOB COSTING AND PROCESS COSTING 2
Job costing and processing costing are similar in several ways. Both systems are used for
the same purpose. The purpose of job costing and processing costing is to assess the cost of
products. Both systems record the costs in the same way. The cost is recorded in separate accounts
and later transferred to the main ledger account (Drobyazko, 2019). Lastly, both job costing and
process costing use pre-established rates per overhead to get overhead. On the other hand, job
costing is different from processing costing. Job costing involves accumulating the cost of a more
specific product within production. A good example of cost production is the cost of making an
aluminum foil. Processing cost involves determining the cost for a broad production of
homogeneous products. Job costing is used when dealing with specific products, while process
costing is applied when dealing with standardized products. There is more bookkeeping in job
costing than in process costing.
The system which best suits my products is job costing. I preferred job costing to process
costing because it was suitable for determining the profit to be made for a specific product and
crucial in pricing. The other reason why I selected job costing is because aluminum foil is a specific
product. When managers adopt job costing may benefit from assessing the cost of making the
product (Bottomley, 2018). It also helps managers understand the exact amount of money required
for production, such as cost for materials, labor costs, and even overhead. Job costing is important
in making a decision. Decisions about pricing and profit are made in relation to the expenses used
in the production of the product. Job costing is important in the making assessing the cost. The
direct costs involved in my product are buying materials such as aluminum alloy. It also consists
of the cost of labor and even overhead. Labor cost is tied to all employees; it is calculated by
multiplying the payrolls by the duration of time needed to complete the job. The cost of material
is tied to all the necessary materials. It is measured by measuring the cost of materials used. A

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JOB COSTING AND PROCESS COSTING 1 Job Costing and Process Costings Name Institution JOB COSTING AND PROCESS COSTING 2 Job costing and processing costing are similar in several ways. Both systems are used for the same purpose. The purpose of job costing and processing costing is to assess the cost of products. Both systems record the costs in the same way. The cost is recorded in separate accounts and later transferred to the main ledger account (Drobyazko, 2019). Lastly, both job costing and process costing use pre-established rates per overhead to get overhead. On the other hand, job costing is different from processing costing. Job costing involves accumulating the cost of a more specific product within production. A good example of cost production is the cost of making an aluminum foil. Processing cost involves determining the cost for a broad production of homogeneous products. Job costing is used when dealing with specific products, while process costing is applied when dealing with standardized products. There is more bookkeeping in job costing than in process costing. The system which best suits my products is job costing. I preferred job costing to process costing bec ...
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