Costing system

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In about 300 words, please provide your response tho this paragraph: Production companies need to determine how to allocate costs to their products in order to establish the price of each product. Two different methods for allocating costs include process costing and job costing. The purpose of a process costing system is to identify and monitor the manufacturing process of identical units that are produced in bulk and break down the cost to distinguish the value of each unit.

In contrast, the purpose of a job costing system is to assign costs to products that can be traced directly to each unit or batch. It is common for the following companies to use job costing systems: construction, special order furniture manufacturers, health care, etc.

In contract, process costing system is used in companies that produce one or two items in mass quantities such as bottling companies, oil refineries, and clothing factories APA format, plagiarism free. Thank you!Production companies need to determine how to allocate costs to their products in order to establish the price of each product. Two different methods for allocating costs include process costing…

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