A cost accounting system estimates product costs for profitability analysis, inventory valuation, and cost control, with two main types: job order costing and process order costing. Job order costing accumulates costs for individual jobs, suitable for unique products, while process order costing accumulates costs through connected manufacturing processes for uniform products produced in bulk. The document highlights examples of each costing method in practice.

2. COST ACCOUNTING SYSTEM
• A cost accounting system also called product costing system or costing system. It
is a structure used by company to estimate the cost of their products for
profitability analysis, inventory valuation and cost control.
• Costing system helps in estimating the closing value of materials inventory, work-
in-progress and finished goods inventory for the purpose of financial statement
preparation.
• There are two main cost accounting systems:
1. Job Order Costing
2.Process Order Costing.

3. DIFFER BETWEEN JOC & POC
• In job order costing , costs are
accumulated for each separate
job.
• Details about a job are recorded
on a job order sheet (cost sheet )
• It is suitable for firms that are
engaged in production of unique
products and special orders.,
• E.g. : Furniture.
• Costs tracked through a series of connected
manufacturing processes or departments.
• Products are uniform or homogeneous in
nature and produced in a large quantity.
• E.g. : A manufacturer of refrigerators.

5. Thank You 
Prepared By : Syed Arshan Ali Shah
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