Job costing refers to the costs that are enacted in the manufacturing business. Job costing ledgers, where such costs are recorded, form a crucial part of the manufacturers' final account statement. This type of costing involves recording the expenses as per the specific jobs rather than a particular process.
Process costing refers to the approach involved in calculating the costs which are determined while engaging in a specific task or job. Job costing entails the costs of each unit of production. It involves the expenses that are accumulated for each production unit. Process costing works effectively for the industries that are seen to produce a single type of product.
It helps to keep a firm grip over the monthly expenditures in a manufacturing business. Both of these terms indicate the costs pertaining to labor, material, and overhead costs. At the conclusion of the day, it is the documentation that is key. With job costing, the job cost sheet is imperative. In process costing, a document having disposition and accumulation of various costs is significant.