The Difference Between Job order cost and Process cost accounting

1. Job order cost accounting system refers to the method of costing where by costs are compiled for a specific quantity of product, equipment, repairs or service that move through a production process as continuously identifiable units. In process cost accounting system the method of cost accounting refers to where by cost are charged to processes of operations and the average of units produced.
2 .Job order cost accounting system is applied by a company that gives  one of a kind offer. It is tailor made to fit its user while process cost accounting system is used by a company that produce a steady stream of nearly identical products over a long period of time.

3. In job order cost accounting system raw materials, direct labor, portion of factory/job overhead cost are charged to a job order while in process cost accounting system cost of raw materials, direct labor and overhead costs are charged to the units produced in a particular period.

4. In job order cost accounting system ram material, direct labor and portion of overhead cost will be accumulated for each job separately. In process cost accounting system each department acts as a cost center.

5. Job order cost accounting is a controlling account supported by subsidiary ledger accounts(job cost sheet). In process cost accounting there is no subsidiary ledger accounts.

6. Job order cost accounting system is applied by contractors, film makers, hospital, ship builders, brochure printing  shops, tax attorney, car accident lawyers, data recovery job, web site design, doctors, answering service, drug rehab, webhosting, debt consolidation etc.. Process cost accounting system is applied in oil refinery, power plants, soft drinks bottlers, flour millers etc