The inventories used in a process costing system are the same as those used in a job order costing system.

Question

Quizplus · Accepted Answer

Both process costing and job order costing systems use the same types of inventories, such as raw materials inventory, work-in-process inventory, and finished goods inventory. However, the way each system tracks and values these inventories differs. In a process costing system, the inventories are tracked and valued based on the average cost of all units produced during a given period, whereas in a job order costing system, each individual job is tracked and valued separately.

The Inventories Used in a Process Costing System Are the Same