A job order cost system and a process cost system are two alternative methods for valuing inventories.

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A job order cost system and a process cost system are two different methods used for valuing inventories. In a job order cost system, costs are accumulated by individual jobs, orders or projects, while in a process cost system, costs are accumulated by department or process. Both systems have their advantages and disadvantages and are appropriate for different industries and situations.

A Job Order Cost System and a Process Cost System