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Process Costing

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Kennedy rightly describes process costing as an approach that is used by organizations manufacturing identical or similar products or services through a consistent process. The example of Chevron Corporation is perfect because it is involved in the consistent manufacture of oil products. The author has provided two more examples of companies that use the process costing system as being Pittsburg Paints and the Wrigley Company. These two firms satisfy the characteristics of a process costing system because of the similar or identical products they manufacture, and through the use of a consistent process. Just like Chevron and oil, Pittsburg Paints produces paints and other paint products using a consistent manufacturing process. Wrigley produces chewing gum products that are similar and identical in a continuous process as well. These examples match the features of a process costing system accurately.

The job costing system is described by the author as being used by companies that deal or manufacture unique tasks or products, which is accurate as described by Blocher and Hicks (2019). Pollard (2018) also explains that job costing is used by companies that are manufacturing or producing unique goods. For instance, Boeing, which has been given as an example by the author is engaged in specific and unique products or services, which makes it a great example for the job costing system as described in the course text and by the author. Deloitte does not produce goods but is involved in offering unique and specific tasks, which qualifies it to be a company using the job costing method. The author, however, fails to give examples of local companies that are involved in the same accounting system.

In the last paragraph, the author is describing the characteristics of these two accounting systems. Job costing is an approach that documents the various types of costs associated with the manufacture of a specific brand of unique products or services (Kelly & Shoemaker, 2017). This characteristic has been provided by the author. Process costing, on the other hand, is used by companies that rely on diverse but related processes to manufacture their products and services, and therefore helps them in tracing the direct and indirect costs linked with the manufacturing process. This characteristic is also given by the author.

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