What differences exist for a manufacturing organization betweenprocess costing and job order costing? What...

60.1K

Verified Solution

Question

Accounting

What differences exist for a manufacturing organization betweenprocess costing and job order costing? What similarities are therebetween the two methods? Are the two methods mutually exclusive?Please include examples of companies using one method or the other(or both).
Please explain the concept of equivalent units. Whydoes the process costing method use them? Why doesn't job ordercosting need to use them?

Answer & Explanation Solved by verified expert

3.7 Ratings (630 Votes)

1 A manufacturing organization uses both a process costing method and a job order costing method to determine the cost but for different scenarios Process costing is used in case of standard production runs where the cost is allocated to various processess and then See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingWhat differences exist for a manufacturing organization betweenprocess costing and job order costing? What similarities...What differences exist for a manufacturing organization betweenprocess costing and job order costing? What similarities are therebetween the two methods? Are the two methods mutually exclusive?Please include examples of companies using one method or the other(or both).Please explain the concept of equivalent units. Whydoes the process costing method use them? Why doesn't job ordercosting need to use them?