Job-order and process cost systems are two different costing systems that a company chooses between based on the preference of management.

Question

Quizplus · Accepted Answer

Job-order and process cost systems are chosen based on the nature of the production process, not management preference. Job-order costing is used for customized products, while process costing is used for homogeneous products.

Job-Order and Process Cost Systems Are Two Different Costing Systems