Processing V. Job Costing

There are two major differences between process costing and job costing process. In one case, job costing process, the process is employed when the services are provided in a uniform way. This means that costs of the supply of the goods that are offered are not changed or at the very least they are not changed much in price from the actual production cycle. Production is a constant. The production causes an ongoing process for the company which utilizes the process for costing methods. This is important because the manufacture must turn out the same model year after year and the same production helps predict the production cost for that product year after year. However; job costing is employed when there are major changes in the goods or services eventually provided at that given point. Job costing results in a group of batches rather than a continuation of products (Blocher, 2010).

Throughout costing, one study that can be viewed in the study that employees" both costing, shifting from a job centered costing method to a process-centered costing method" (Chan, 1993, p.11). "Through per-patient costs varies greatly, it was actually found to be beneficial to the institution to shift to the process -based costing, as the individual processes performed were largely the same, through their combinations differed for each patient" (Chan, 1993, p.10).

Dosch and Wilson (2010) do seem to do a good job of defining job and process costing, and the person who posted this seems to have understood these definitions fairly well in the abstract that is, the definitions provided seem reasonable and the application of these definitions of businesses chosen by the poster are explained in a way that clearly links them to these definition. At the same, the poster seems to have had some trouble accurately identifying companies where job hunters might be employed, despite grasping the abstract technicalities of the definition of job costing. While it is likely that the individual laborer might be able to identify that they worked on a particular section of an airplane or wall or a mobile home, thus trying labor to specific products and making job costing seem a likely choice, it is also highly likely that these laborers respect exactly the same tasks day in and day out, and the over and the course of a year they manufacturer many of the exact same type of airplane or mobile home. A factory that burns out mobile homes probably uses the same design of designs with the same material and asset number of hours needed to complete each home, making process costing more effective. The same is true for airplanes.

Job-costing system. A job-costing system is used when many different types of products are produced each period.

Process costing compared with job costing

Process costing does not distinguish between individual units of a product and applies