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Job order costing the costs are accumulated by the job order and these are then recorded on job-cost record. Process costing is accumulated by department,

Job order costing the costs are accumulated by the job order and these are then recorded on job-cost record. Process costing is accumulated by department, rather than by the job order (Hilton, & Platt, 2016). A company that would use this system would be Nestle. Nestles products range from bottled water, frozen foods, pet care, and infant nutrition (Nestle, 2019). Nestle continues to focus on the growth of the company and has 300 locations in the United States and 79 manufacturing facilities and serve in other global areas as well. The orders that are received are known as a job or a batch. Petroleum Companies would be an example of process costing as they are producing similar or identical products. More specifically Chevron gasoline would be a company that produces petroleum products. With Chevron gasoline the company the costs are assigned in a large batch. For example, this may include for Chevron a months worth of production. These costs will then be allocated to individual units. Production is continuous, and process costing is used to track where money is being spent and how much on production and distribution.

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