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The commodity products are similar and they require nearly identical materials, labor, and time of production. Process costing accumulates products related to cost for a period of time. In this situation, it is expected that a typical batch of commodity will take over a week to manufacture and as a result, tens of thousands boards will be produced.
Job-order cost system on the other hand, is more appropriate for differentiated products. In made-to-order (Differentiated) boards, the costs are assigned to each or each batch of goods. Each model is custom designed, and the different models require modifications to the production process...
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