The objective of process costing is the same as job order costing: to assign all costs to specific jobs.

Question

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The objective of process costing is to assign costs to each process or department, rather than to specific jobs. This is because process costing is used in industries where large quantities of homogeneous products are produced, such as in the chemical or food processing industries. In contrast, job order costing is used in industries where customized products are produced, and the objective is to assign costs to each specific job or order.

The Objective of Process Costing Is the Same as Job