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Job oder costing is a costing method applied where work is undertaken to customer 's special requirements and each order is of comparatively short duration. The work relating to a job moves through processes and operations as a continuous identifiable unit. Job costing is most commonly applied within a factory or workshop.
Process costing is a costing method used where it is not possible to identify separate units of production, or jobs usually because of the continuous nature of the production processes involved.. it is common to identify process costing with continuous production such as oil refining ,food and drinks etc Process costing is the best in petroleum firms.
Job Order Cost is the method of costing applied where the work is done by a Job. In Simple term it is used where the work is done by a job basis. Whereas Process costing is the method of costing applied where the work is done through different process. Process costing is the only method of costing can be applied in Petroleum.
process costing is used where its impossible to calculate the single unit of outpur like suger industry in this case process costing is use
while job order costing is use where its possible to calculate the cost of single unit
the job order system is used for specific job like maintenance for the cars or repairing machines. process costing is using mostly by manufacturing companies those are producing different types of products which they can not identify or separate each product cost in the production line
job order costing is method which can be applied on a specific product like a specific project aand the company produces the product by order
process costing is best applied on homogeneous products such as beverages
process costing is better for petroleum firms
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