What is the difference between job costing and process costing?

Job Costing and Process Costing are two methods used to track and allocate costs in different production environments:
Job Costing: This method is used when production is based on specific orders or projects, which are unique and distinguishable from each other. Costs are tracked for each job individually. It is commonly used in industries like construction, custom manufacturing, and professional services. For example, in a construction project, materials, labor, and overhead are tracked separately for each building constructed.
Process Costing: This method is used when production is continuous, and the products are indistinguishable from each other. Costs are accumulated over a period and then allocated to units produced during that period. It is commonly used in industries like chemicals, oil refining, and food processing. For example, in a chemical manufacturing plant, costs are accumulated for a month and then divided by the number of units produced to determine the cost per unit.