Difference between job costing and traditional costing

Different costing objects, different cost allocation basis.

1, different costing objects: the traditional costing method to the product as the object of accounting, through the direct materials, direct labor and manufacturing costs of the three cost items to centralize product costs. Job costing method to job as the object of accounting, through the production and operation process of the enterprise is divided into different operation center, according to the operation center to collect costs.

2, the cost allocation basis is different: the traditional cost method to a single production or work as the basis for cost allocation, the manufacturing costs in accordance with certain criteria allocated to the product. Job costing method of cost allocation based on jobs.