This document discusses and compares three costing methods: job order costing, process costing, and activity-based costing. Job order costing is used for unique orders and tracks costs from start to finish of a job. Process costing is applied to mass production involving continuous processes not tracked from start to end. Activity-based costing identifies costs by activity to more accurately assign costs based on resource consumption.

2. Job Order Costing
Process Costing
Activity BasedCosting

3. RegularOrder
Costs: Rs. 2000
UniqueOrder
Costs: Rs.3200

4. Greenberg and Schneider (2010)
explain the job order process as
everything involved from the
purchase of raw materials to the sale
of the finished product.

5. Two one-half full pitchers are
equivalent to one full pitcher.
+ =

6. Horngren (1967) explains that process
costing is applied when like products
are mass-produced and involve
multiple continuous processes within
the manufacturing cycle.

7.  Useful in different situation
 Job order costing is for Unique Orders while
Process costing is for mass production
Job order costing is determined from starting to
completion of the order , whereas, process costing
is applied for continuous manufacturing processes
not necessarily from starting to ending of the job

9.  Impact different aspects of decision-making.
Modify Costs of Job according to Budget in Job-order
costing
 Process costing helps us to look at costs incurred in
the different processes which helps us to identify high
costing process.
Process Costing makes more efficient in terms of
consumption of resources

11.  Method of identifying various activities to assign the
cost of each activity according to the their
consumption of resources.
Provides more accurate information about the
overall consumption of resources in a company and
where the costs are being incurred.
Activity based costing may be preferable over
traditional costing.