Distinguish between Job Costing and Process Costing?

The main points which distinguish Job Costing and Process Costing are as below: Job Costing Process Costing (i) A Job is carried out or a product is produced by specific orders. The process of producing the product has a continuous flow and the product produced is homogeneous. (ii) Costs are determined for each job. Costs are compiled on time basis i.e., for production of a given accounting period for each process or department. (iii) Each job is separate and independent of other jobs. Products lose their individual identity as they are manufactured in a continuous flow. (iv) Each job or order has a number and costs are collected against the same job number. The unit cost of process is an average cost for the period. (v) Costs are computed when a job is completed. The cost of a job may be determined by adding all costs against the job. Costs are calculated at the end of the cost period. The unit cost of a process may be computed by dividing the total cost for the period by the output of the process during that period. (vi) As production is not continuous and each job may be different, so more managerial attention is required for effective control. Process of production is usually standardized and is therefore, quite stable. Hence control here is comparatively easier.