The type of product a company produces affect the type of accounting system needed to determine product cost. The 2most common types of costing systems are job-order costing and process costing.
Compare and contract job order and process costing systems. How can events in a job order costing system affect financial statement? How Can events in a process costing system affect financial statements? Provide an example for each type.
Compare and contrast job order and process costing systems.
One similarities between job order and process costing systems xxxxxxx are that thexxxxxxxx of both systems is to xxxxxxx the cost of a product. Another similarity between job order and process costing is that they xxxxxxxx xxxxxxxxxxxx cost xxxxxxxxxxx and apply xxxxxxxxxxxx overhead when calculating xxxxxxxxxxx rate (Lumen, n.d).
However, in the job order costing system, xxxxxxxxxxxxxx are xxxxxxxxxxx to the product and xxxxxxxxxxxxon individual job cost sheets. In contrast, in process costing, xxxxxxxxx xxxxxxxx are xxxxxxxxxxx to the xxxxxxxx and xxxxxxxxx in the departmental cost sheet (OpenStax, n.d).