Explore jobs
Find specific jobs
Explore careers
Explore professions
Best companies
Explore companies
This question is about list of skills.
Job costing vs. process costing
The difference between job costing and process costing is that job costing refers to a method organizations use to keep track of all the expenses related to a specific job, while process costing refers to a method organizations use to keep track of production expenses related to mass-produced products.
Job costing involves determining the expenses of all materials, labor, resources, and overhead used to complete a specific job. This method is often used to keep track of costs associated with developing or creating a specific project or product. It is helpful to companies because it allows them to learn the most cost-effective ways to complete projects or products.
Process costing is a method used to determine all costs involved with the mass production of specific goods. This method is most often used by organizations that have large manufacturing operations that produce massive quantities of the same product or goods. Process costing takes into account all direct costs and indirect costs involved in production.
Key Takeaways:
| Job costing | Process costing |
|---|---|
| Job costing refers to a method organizations use to keep track of all the expenses related to a specific job. | Process costing refers to a method organizations use to keep track of production expenses related to mass-produced products. |
| Job costing is meant for smaller-scale operations, like custom products or small batches of items. | Process costing is meant for large-scale operations, like the manufacturing of massive quantities of the same product or good. |
| Here is the formula for job costing: Total job cost = Direct Materials + Direct Labor + Relevant Overhead | Process costing takes into account all direct costs and indirect costs involved in production and manufacturing. |
| Job costing can help companies determine their pricing for custom products or unique services. | Process costing can assist companies in finding a good fixed price for a mass-produced item that leaves a solid profit margin when all direct and indirect costs involved in making that item are accounted for. |
| Since job costing applies to smaller-scale projects and products, the record-keeping involved tends to be more detailed. | Process costing normally requires less detailed record keeping because it utilizes averaged costs to determine a fixed price per product. |
Choose from 10+ customizable resume templates
Zippia allows you to choose from different easy-to-use templates, and provides you with expert advice. Using the templates, you can rest assured that the structure and format of your resume is top notch. Choose a template with the colors, fonts & text sizes that are appropriate for your industry.
