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Please discuss the definition, application, and benefits of job order costing and process costing. Compare and contrast the two methods.
Superior written essays will mention and explain the following elements:
Define job order costing as the detailed accumulation of production costs attributable to specific units or group of units.
Define process costing as the accumulation of production costs for lengthy production runs involving products that are indistinguishable from each other.
Job order costing generally applies to customized products or projects.
Process costing generally applies to large batches of identical product units.
The narrative will compare and contrast the two costing methods.
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