Which of the following most accurately describes the contrast between process and job costing?
A) In process costing, they include all the factors of production but job costing includes only materials and labor
B) job costing includes materials, labor and overhead while process costing only considers conversion costs
C) the main difference is the extent of averaging used to compute the unit costs
D) job costing measures the variable cost of identical jobs while process costing measures the cost of identical products using average units costs of materials and conversion costs, some of which are fixed costs

Question

Quizplus · Accepted Answer

The main difference between process costing and job costing is the extent of averaging used to compute the unit costs. Process costing averages costs over large numbers of nearly identical products, while job costing assigns costs to specific jobs or batches, which can vary significantly in their requirements.

Which of the Following Most Accurately Describes the Contrast Between