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Process costing is used when products are mass produced using a continuous production process, while job costing is used when products are produced in batches. In process costing, all costs are assigned to the product, while in job costing, only direct costs are assigned to the product. There is no need to track individual products, while in job costing, individual products must be tracked. In process costing, a weighted average method is used to assign costs to the product, while in job costing, a specific identification method is used to assign costs to the product. All products are treated equally, while in job costing, each job is treated separately.

Examples of companies that use process costing include manufacturers of chemicals, steel, automobiles, etc. Any non customizable large manufacturers. An example of a company that would use job costing would be a construction company, which produces a unique product and incurs different costs for each job.