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In 300 words, please reply to this paragraph:There is a slight difference in the process of using when it comes to job costing and process costing system. Job costing system is used when the products and services provided by a company are varied can be distinctively identified. In that case, job costing is likely to be used by companies like UPS, Marriott International, tax and accounting firms, Insurance companies like Progressive, Geico, etc. 

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Also companies in service industry are also using the job costing system because the service they provide is expected to be distinctive in nature and would have varied quantities of labor and materials used. On the other hand, product costing is used when the products and services provided by a company are homogeneous in nature. These are the companies that involve in mass production. Product costing system is used by the companies when the products and services provided by a company are homogenous in nature and are not distinctively identified from each other. In this case, product costing is likely to be used by companies like Pepsi, Toyota, Hamilton Beach, Textile companies, Sony, Hewlett-Packard Company, etc. In cases of companies using product costing system, it becomes difficult to trace the cost associated with one individual product. There are three major features of process costing that is distinguishable from job costing where the first one is the “concept of equivalent units”; second, involvement of “transferring costs from one process to the next” and third, non-requirement of “accumulation of routinely total cost per unit of output”.

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