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The two basic types of cost accounting systems are: A. Job order costing and perpetual costing. B. Job order costing and customized product costing. C. Job order costing and customized service costing. D. Job order costing and process costing. E. Job order costing and periodic costing.
This lesson focuses on Process Costing. There are two main types of cost accounting systems. Companies select a method that best matches the flow of work in their business. These methods are used to allocate all production costs: labor, materials and overhead.he method used depends on the needs of the business. Process Costing traces and accumulates direct costs, and allocates indirect costs, through a manufacturing process. Costs are assigned to products, usually in a large batch, which might include an entire month's production.