Which of the following characteristics applies to process costing,but does not apply to job order costing?
A)The need for averaging.
B)The use of equivalent units of production.
C)Separate,identifiable jobs.
D)The use of predetermined overhead rates.

Question

Quizplus · Accepted Answer

Job order costing deals with individual, unique jobs, whereas process costing involves the production of homogeneous goods or services over a period of time. Therefore, process costing requires the use of equivalent units of production to calculate the cost per unit, while job order costing does not. The other options (A, C, and D) all apply to both process costing and job order costing.

Which of the Following Characteristics Applies to Process Costing,but Does