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Cost Accounting

Name: Muhammad Munib Khan


Registration No: BBA 142010
Course Code: AFN 433
Course Instructor: Ms. Tahira Yawer

Q.1) List 5 industries (each) where job order and process costing is used.

Job Order Costing


I.
II.
III.
IV.
V.
VI.

State Agency
Repairing Companies
Entertainment Industry
Airplane Manufacturing Companies
Hospitals
Printing Firms

Process Costing
I.
II.
III.
IV.
V.

Cement Industry
Flour industry
Mobile phone industry
Furniture industry
Paint manufacturers

Q.2) Differences between job order and process costing


Job costing refers to calculating the cost of a special contract, work order
where work is performed as per client's or customer's instructions. Whereas a
costing method, in which the costs which are charged to various processes

and operations is ascertained, is known as Process Costing. The difference


between the two are explained below:

Job Costing

Process Costing

1. It is used for customized production.

1. It is used for standardized


production.
2-Process costing is perfect for the
industry where mass production is
done.

2. Job costing is suitable for the


industries which manufactures products
as per customer's order.
3. Costs are determined for each job
separately.
4-Job costing uses cost sheet and
accumulates manufacturing costs for
each job or batch separately.
5-Job costing has no time frame. It ends
after the completion of a particular job
so that costs are accumulated for each
job.
6-Process costing divides total
departmental process costs by the
departmental process output to derive
the unit cost.

3-Products lose their individual entity as


they are manufactured in a continuous
flow.
4-Process costing accumulates
manufacturing costs for departments or
processes.
5-Process costing has a time frame of
certain months or years for which costs
are accumulated
6-Job costing obtains unit cost by
dividing the total cost of the job by the
job order units.

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