Which of the following is a similarity between job order costing and process costing systems?

Question

Quizplus · Accepted Answer

Both job order costing and process costing systems track cost flows from raw materials to work in process, from work in process to finished goods, and from finished goods to cost of goods sold. This is because both systems are designed to accumulate the costs of producing goods. Option A is incorrect because job order costing accumulates costs for each job separately, but process costing accumulates costs for each production department over a period of time. Option B is incorrect because job order costing accumulates costs for each job separately, while process costing accumulates costs for each production department over a period of time. Option D is incorrect because job order costing is used for custom-made products, while process costing is used for homogeneous products.

Which of the Following Is a Similarity Between Job Order