Question

Give one example of Saudi companies using job costing and one example of Saudi companies using process costing and discuss the difference between them?  

Answer 1

Saudi company using job costing in Saudi Arabia is A.G. Enterprises.

Saudi Company using process costing in Saudi Arabia is AI Hoty Co LTD.

Difference between Job and Process Costing

Basis	Job Costing	Process Costing
Define	Job costing is the cost of an assignment where work is done according to client's needs and their instructions.	In it cost is calculated on the basis of various processes.
Production	Here production is customized.	Here production is standardized.
Assignment	The cost of each job is calculated in it.	In it cost is first determined on the basis of process and then on the basis of units produced by the company.
Cost Calculation	job is the basis for cost Calculation.	Process is the basis of cost Calculation.
Reduction in cost	There are fewer scope in cost reduction since it is calculated on the basis of client's needs.	There is higher scope in cost reduction.
Cost transfer	Job cost cannot be transferred.	Process cost can be transferred from one process to another.
Individuality	All the jobs are different from each other therefore all the products have their own individuality.	Here products are produced in large numbers due to which they do not have any individuality.
Losses	Here it is very difficult to segregate losses.	On the basis of processes losses can be segregated.
Work in Progress(WIP)	WIP may or may not exist here.	In the beginning and ending of the period WIP will always exist.
Size of job	It is usually used for small business houses.	It is generally used for large production houses.
Examples	Furniture,shipbuilding and interior decoration business etc.	Soap,paint,cold drinks,snacks business etc.