What is the difference between job order costing and process costing?

This statement is misleading because, while finished goods inventory in job order costing does consist of completed units, the per-unit cost is not solely determined by this method. Job order costing focuses on tracking costs per job rather than averaging costs per unit, which is more characteristic of process costing.

This choice inaccurately describes job order costing, which assigns costs to specific jobs rather than to departments or processes. In contrast, process costing assigns costs to processes or departments and averages them across all units produced, highlighting the key difference between the two costing methods.

While it is true that finished goods inventory in process costing may include unsold completed products, this statement does not address the specific nature of job order costing. It merely describes a feature of process costing, thus failing to clarify the distinction between the two costing systems.