A comparative study of process and job costing will help in understanding both systems in a better way.
|1. Costs are calculated process-wise and per unit cost is the average cost ascertained by dividing the total cost of the process by the number of units produced.||1. Costs are separately calculated for each job, which is a cost unit.|
|2. Production of standardized and identical products is undertaken.||2. Production of non-standardized and unidentical items is undertaken in accordance with the instructions and specifications of the customers.|
|3. Costs are calculated at the end of a particular period.||3. Costs are ascertained on the completion of a job.|
|4. As there are series of processes employed, the cost of one process is transferred to the other process.||4. As the job as a whole is considered as a single unit, there is no of one part of job to another.|
|5. The nature of production is continuous, there is usually work-in-progress in the beginning as well
as at the end.
|5. The work-in-progress may or may not occur in the beginning and at the end of the accounting period.|
|6. On account of continuous and un-interrupted production, cost control is comparatively easier.||6. Cost control becomes difficult due to the intermittent nature of production.|
|7. Production is taken to stores.||7. Production is undertaken against orders from the customers.|