Explain the differences between job costing and process costing.

Job costing and process costing are two distinct methods used to allocate costs to products or services in manufacturing or service industries. Job costing is used when products or services are produced uniquely or in small batches, allowing costs to be directly traced to each job or project. Conversely, process costing is employed in continuous production settings where products are homogeneous and flow through a series of processes. Costs in process costing are averaged over the units produced within a specific period, making it suitable for industries like chemicals, food processing, or utilities where mass production occurs.