Chapter 20, Problem 4RQ

To determine

Concept introduction:

Job order costing system: Job order costing system is applied to assign the cost of an individual product or service where the product or service is customer oriented and is not identical. This costing system allows ascertaining the cost for each unit of product or service separately.

Process costing system: Process costing systems is a system to assign the costs where the production goes through different processes. A product may take several processes to complete and when these processes are separable, the process costing system is applied to ascertain the cost of each process.

To indicate: The similarities between Process costing system and Job order costing system