The three major differences between process and job order costing systems are those relating to:

Question

Quizplus · Accepted Answer

The three major differences between process and job order costing systems are related to the cost object (process costing assigns costs to homogenous products while job order costing assigns costs to unique products), product or service variety (process costing deals with a single product or a limited range of similar products while job order costing deals with a wide range of products), and timing of unit cost calculation (process costing calculates unit costs at the end of a production period while job order costing calculates unit costs for each job or batch). The other options do not accurately describe the differences between the two costing systems.

The Three Major Differences Between Process and Job Order Costing