While costs are measured for individual jobs in a job order costing system,they are measured for individual process stages in a process costing system.

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In process costing system, costs are measured for individual process stages rather than for individual jobs. The cost of production is accumulated and assigned to each process, and the total cost is divided by the number of units produced in that process to calculate the cost per unit. This method is commonly used in industries where large quantities of identical products are manufactured, such as chemical production or food manufacturing.

While Costs Are Measured for Individual Jobs in a Job