Debate between Order Costing and Process CostingContentsPART 1 INTRODUCTION 1PART 2 COSTING SYSTEM 21. Job Costing order (JOC) 22. Process costing (PC) 3PART 3 ACCOUNTING METHODOLOGIES 41. Last in, first out (LIFO) 42. First in, first out (FIFO) 53. Comparison between LIFO and FIFO 6PART 4 ​​CASE STUDY 7Case 1 – Law Firm 7Case 2 – Furniture Manufacturing Industry 7Case 3 – Bakery 8PART 5 CONCLUSION 9PART 1 INTRODUCTIONThis report aims to distinguish and identify companies that can use Job Order Costing and Process Costing which are the main types of cost systems used in manufacturing and service businesses. Both costing methods are widely used to track costs and will be selected based on the level of detail required and management's desires. The details will be described in part 2. Besides costing systems, we should also have a good inventory control system. Inventory may consist of finished goods, work in progress, raw materials, merchandise for resale, and spare parts owned by the company. It is important to have an inventory control system and record the value of inventory to ensure the availability of stock items and to avoid excess inventory, which could result in a loss of cash flow to the company. business. A perpetual system must be maintained on an ongoing basis to record inventory variations and the periodic system will be updated periodically. Last in, first out (LIFO) and first in, first out (FIFO) are two different accounting methods. methods that set a value on inventory and calculate profit, manage and record inventory and the financial transactions involved in a business...... middle of paper ......d for a long period of time or in course of destruction. This may cause a loss to the business. PART 5 CONCLUSION According to the above, FIFO is generally applied while the relevant tax departments do not accept LIFO. This is because the real production costs are overestimated and the net income will be less, therefore the tax payment will be lower. On the other hand, LIFO is attracted because it can lead the company to have a higher cash flow due to lower tax payment and it cushions the effects of inflation. FIFOs are widely used because it is easier for the employee to manage the inventory account which is not as complicated as LIFO. The employee just needs to check the price of the item in the current stock records, while LIFO requires the employee to edit the record once the price of a new item is entered. Overview of LIFO and FIFO, FIFO is more acceptable and applicable to today's businesses..