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Process Costing vs Job Order Costing

Do you feel that knowing and being proficient in one ties directly to the other?

In other words, you work in discrete (Job Order) manufacturing, can you just walk into a Process shop and go or would you have to study the nuts and bolts of process again?


Joseph Anderson
Title: Consultant
Company: Private
(Consultant, Private) |

I believe job costing is often more for unique products, possibly time and material billed to a client and process costing is more for standardized products, maybe in higher volume. As to other differences, not real sure if it's a totally different skill set or not.

Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

My personal experience.....

It depends on the company (lifecycle) and I don't need to "study" the nuts and bolts again. More like a refresher. The process itself in familiarizing with the new company's processes/costing IS the refresher.

I say depending on the company lifecycle because it is different for a very new company that is just establishing it's processes/costing. It is different for a "mature" company that has it's processes costing already developed. In the latter case, it just needs a bit of tweaking here and there. In the former case, I have to read up (not really the "nuts and bolts") on the the process and refresh myself since there is no existing process. (wonder if this last paragraph made sense).


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