This week’s readings explore the different types of costing systems available to businesses. In a 5 page paper, NOT INCLUDING THE COVER AND REFERENCE PAGES, compare and contrast the different costing...

Accounting System
Cost Accounting System
Student Name
University Name
Unit Name
Compare and contrast the different costing systems, identifying the advantages and disadvantages of each
Comparison
Job-costing includes a detailed increase of the production costs generated by a specific unit or group of different units. For instance, construction of the custom designed part of the furniture will be explained by a work cost calculation system. Cost of the labour that works on that particular piece of the furniture will always be recorded on the timetable and then amass on the cost of the work. Likewise, other components use to construct the furniture will be brought to the production work associated with the furniture. This data can then be utilized to charge clients for the work performed as well as the materials used, and to track range to which the organization's profits in the production work associated with the particular furniture item (Askarany, 2011).
Process costing includes the accumulation or arrangement of the costs for long-term production runs including products that is impossible to differentiate from each other. Such as, the 100,000 gasoline gallon’s production would require that all of the oil utilized in the procedure, and all labour in a refinery facility, is accumulated into the cost account furthermore divided by several units that is produced to reach cost every unit. The costs are just probable to accumulate at the departmental level and not within the company.
Advantages of Job costing as well as Process costing 
Job-order system for costing is considered by the generation of small amounts of heterogeneous, different and unique items. The items are simply produced according to the customer requirements and can at least trace direct materials moreover direct work costs. Process cost accounting is considered by the manufacturing of a large number of homogeneous (similar or similar) items. In the production process, specific items cannot be identified at a specific cost.
Disadvantages of Job costing as well as Process costing 
The biggest disadvantage of the job ticket costing is that the employees are needed to track the materials as well as labour utilized during the job. In process costing, cost errors can easily occur. Tracking all costs as production costs including non-production costs (such as overheads), raises production prices. This creates a higher price product for consumers (Bragg & Bragg, 2017).
Although there are significant differences between these systems, they are similar in many respects. (Recall three inventory accounts which accountants used to track the product cost data- raw material record, work in the process inventory, as well as finished product record. These 3 inventory accounts utilized to record process costing and work cost accounting system product cost information. Cost-based accounting systems typically use multiple WIP inventory accounts to track product cost flows for every...