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A different type of costing method that might work better for the tech industry is activity-based costing (ABC). ABC is a more sophisticated costing method that assigns costs to activities rather than to products or projects. This can be helpful in the tech industry because it can help businesses to identify and eliminate waste.

However, ABC is also more complex and expensive than job order costing. It is important to consider the specific needs of the business before deciding which costing method to use.

Here are some of the pros and cons of job order costing and process costing:

Job order costing

• Pros:
  • Accurately tracks the costs of each job or project.
  • Can be used to bill customers accurately.
  • Flexible and can be adapted to different businesses.
• Cons:
  • Can be time-consuming and expensive.
  • Not suitable for mass-produced products.

Process costing

• Pros:
  • Simple and easy to use.
  • Cost-effective for mass-produced products.
• Cons:
  • Less accurate than job order costing.
  • Not suitable for unique products or projects.

Ultimately, the best costing method for a particular business will depend on the specific needs of the business.