Are raditional costing system and job order costing in managerial accounting the same?
Not the same. Traditional Costing is referring to costing systems of product cost or service cost before the introduction of activity based costing, it is using plant wide rate cost driver or departmental rate cost drivers for allocation of overhead to product or service. With more machines and less labour used in production in recent years, traditional costing produced inaccurate product costs, different products tend to get similar costs, therefore simple to produce products are over-priced and difficult to produce products are under-priced. Job costing is usually contrasted with Process costing. Job costing is to determine cost of producing a unit of product or service that are unique to a particular job order only, mainly used in industries producing unique goods and services only.
