Job Order and Process Costing Systems

question 57

Essay

Job order and process costing systems
There are two distinct types of cost accounting systems: job order costing systems and process costing systems.How does management decide whether to use a job order costing system or a process costing system in any given manufacturing situation? Explain briefly.

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Definitions:

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not; the traditional concept extends to include relatives.

Autopsy

A medical examination of a deceased person's body to determine the cause of death or investigate disease processes, conducted by a pathologist.

Decline

A gradual decrease in quality, quantity, or importance.

Purposes

The reasons for which something is done or created or for which something exists.