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How is job order and process costing similar?

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5 votes

Answer: The following are the similarities between job order and process costing:

Step-by-step explanation:

Job order costing and process costing have significant similarities:

  • Both job and process cost frameworks have a similar objective: to decide the expense of items.

  • Both job and process cost frameworks have a similar cost streams. Bookkeepers record production in separate records for materials stock, work, and overhead. At that point, they move the expenses to a Work in Process Inventory account.

  • Both job and process cost frameworks used predetermined overhead rates to apply overhead.

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