Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 4 - Process Costing - Questions - Page 159: 4-2

Answer

The similarities between job-order and process costing: Both systems use the same basic manufacturing accounts; Costs flow through the accounts in basically the same way in both systems; Job-order and process costing similarly have the same basic purpose to assign material, labor and overhead cost to products and to provide a mechanism for computing unit costs.

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