Question

Why might an advertising agency use a job costing for an advertising campaign by pepsi, whereas a bank might use process costing to determine the cost of checking account deposits?

Answer 1

he main aim of job costing is to identify all the specific aspects of each job. Whereas, Process costing can be used to compute the cost of each checking account withdrawal. The process of checking account withdrawals is similar for many customers. In Job Costing, costs are assigned to a batch or "lot" of a product or service while in a process costing system, the cost of a product or service is obtained by using broad averages to assign costs to masses of identical or similar units.