ACCT 101 (financial accounting) gave us the foundation to understand how to classify costs as assets, liabilities, or as one of the many owner equity accounts. Now we can take our ACCT 101 knowledge and apply it to ACCT 102. We are still focused on the bottom line, that is did we earn a profit or loss (income statement) and how solvent (balance sheet) is our company?

In ACCT 102 we spend a good deal of our time learning different costing models (assigning value [our cost] to our goods or services). Process costing and Job order costing our are first two cost models. So, tell me in this discussion board what are the differences between the two costing systems, Process and Job Order? When is it appropriate to use one model over another? How does a costing model affect the Income Statement and Balance Sheet?