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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.
Cost accounting describes several different systems of approximating the cost of producing certain products in the manufacturing industry, or completing certain jobs in the service industry. Activity-based costing (ABC) is the most widely adopted and well-known method of cost accounting. third system, process costing, is used by companies that have consistent production of the exact same product or service. A cost is assigned to processing units. That cost becomes either the input of the next division in the production chain or part of the final product.