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When there is one WIP account, company use job order costing system. It is so because job order costing system has only one WIP inventory account. On the other hand, process costing has WIP account for each process.

The company preparing the production report uses the process costing system. It is so because the production cost report is prepared in process costing system. While in job order costing system, job cost record is prepared.

Process costing system is used when the company accumulates the cost by process. It is so because process costing involve series of process in manufacturing of products.

The company preparing the job cost sheets use the job order costing system. It is so because the job cost records for each job is prepared in the job order costing system. While in process costing system, production cost report is prepared.

Process costing system is used when the company is engaged in manufacturing the homogeneous (similar) products by following a series of uniform steps or processes.

Process costing system is used when the company is maintaining multiple WIP inventory account for each process or department, it is so because it means the manufacturing of product is conducted through a series of multiple process.

Process costing system is used in the companies, in which the cost is transferred at the end of the accounting period. While in job order costing system, cost is transferred when each job is completed.

Job order costing system is used. It is so because the companies that are engaged in manufacturing the unique products, products on batches or providing the specialized services uses the job order costing system.