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    sonicvibe's Avatar
    sonicvibe Posts: 13, Reputation: 1
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    #1

    Sep 27, 2009, 09:00 PM
    Job costing or process costing system
    Why is an apparel manufacturing factory under job costing? Or a textbook publisher. That is under job costing as well. Can someone explain? I am confused. According to the definition, a job costing system assigns costs to distinct units; a process costing system assigns costs to masses of smaller units. Doesn't an apparel manufacturing factory produce large masses of identical apparel? Therefore process costing system? Thanks!
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Sep 29, 2009, 09:25 AM

    Job costing is used where the production is carried out according the specific requirements of the customer whereas process costing is used where the production is carried out without waiting for customer orders.
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