Which of the following is a difference between job order costing and process costing systems?
◦ Companies that use a process costing system accumulate product costs in each production department and allocate the costs evenly across all units produced in the department during the period, while companies that use job order costing accumulate product costs by job and allocate those costs only to the units in that job.
◦ A process costing system is appropriate for a company that manufactures custom solar panels, while a job order costing system is appropriate for a company that manufactures a line of solar panels.
◦ Companies that use a process costing system accumulate direct material and direct labor, and omit manufacturing overhead, while companies that use a job order costing system accumulate direct material, direct labor, and manufacturing overhead.
◦ Companies that use a process costing system accumulate product costs throughout the production process, while companies that use a job order costing system accumulate product cost only at the end of the production process.
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