Multiple Choice Question

Which of the following is a key difference between process and job$-$order costing?

Job$-$order costing systems compute unit costs by department, and process costing systems compute unit costs by job.

Process costing accumulates costs by order, and job$-$order costing accumulates costs by department.

Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.

Job$-$order costing is used for indistinguishable products, and process costing is used for different jobs that have unique production requirements.