The flow of costs through the manufacturing accounts is essentially the same in both process costing and job-order costing.

Question

Quizplus · Accepted Answer

Both process costing and job-order costing track the flow of costs through manufacturing accounts in a similar manner, starting with raw materials, moving to work in process, and then to finished goods before being sold. The primary difference lies in how the costs are accumulated and assigned to products, not in the fundamental flow of costs.

The Flow of Costs Through the Manufacturing Accounts Is Essentially