Which of the following differentiates job costing from process costing?
A) Job costing is used when each unit of output is identical, and process costing deals with unique products.
B) Job costing is used when each unit of output is identical and not produced in batches, and process costing deals with unique products produced on large scale.
C) Process costing is used when each unit of output is identical, and job costing deals with unique products not produced in batches.
D) Job costing is used by manufacturing industries, and process costing is used by service industries.

Question

Quizplus · Accepted Answer

Process costing is applied in industries where the products are more or less identical and produced in a continuous flow, such as in oil refining or in manufacturing basic chemicals. Job costing, on the other hand, is used for unique products or jobs that are not produced in continuous series, such as construction projects or custom manufacturing.

Which of the Following Differentiates Job Costing from Process Costing