The main difference between job order and process costing systems is that
A) one accumulates costs by materials issued and the other by labor incurred.
B) one accumulates costs by individual jobs and the other by particular processes.
C) one emphasizes costs accumulated in completed products and the other emphasizes costs associated with work-in-process.
D) one emphasizes costs adding value to the product and the other emphasizes costs incurred because of waste, scrap, and obsolescence.

Question

Quizplus · Accepted Answer

Job order costing accumulates costs by individual jobs, such as unique custom-made products, while process costing accumulates costs by particular processes, such as producing standardized products in a continuous flow.

The Main Difference Between Job Order and Process Costing Systems