Is it true that Job-order costing is used in manufacturing companies and process costing is used in service companies.Is it true that Job-order costing is used in manufacturing companies and process costing is used in service co?
No, in general it's the other way round.
Manufacturers (again in general) make many identical units of the same product, so process costing would be appropriate.
In a service company, most jobs are unique and the costs incurred can be assigned to specific jobs = job order costing.
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To whomever gave my answer a thumbs-down, please feel free to answer the question and explain why my answer is wrong. I like to learn, and I feel my answer is correct. Please enlighten me with your reasoning. If you make a good argument, I shall delete my answer and give you a thumbs-up for yours. I really specifically want to know how you can argue that service companies use process costing.
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