27th Edition
WARREN + 5 others
ISBN: 9781337272094




27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Job order versus process costing

Which of the following industries would typically use job order costing, and which would typically use process costing?

Steel manufacturing

Business consulting

Web designer

Computer chip manufacturing

Candy making

Designer clothes manufacturing

To determine

Cost Accounting Systems

Cost accounting systems are used to measure, record and report product costs. Managers are used products costs for setting product costs, controlling setups and developing financial statements. They are two types of Cost accounting systems they are:

  • Job order costs, and
  • Process costs

Job order costs

It is a method of cost accounting, in which cost is collected and accumulated for each job, work order, or project separately. Especially the job order costing is followed in organizations where customized goods are produced.

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

To Identify: The industry that comes under Job- order costing or Process costing.


The industry that comes under Job-order costing or process costing as shown below:

  • Steel manufacturing industry comes under process costing.
  • Business consulting comes under job-order costing.
  • Web designer comes under job-order costing...

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