PEO is the acronym for Professional Employer Organization.  The purpose of a  Professional Employer Organization  is to manage the human resources, the payroll and administrative expenses of a business, called the Client Firm.  Technically the employee works for this organization as the agency assumes responsibility for recruitment, wage, tax reporting and personal recordkeeping for all the employees. That means that the agency can terminate an employee if it is necessary.

The employees working under this arrangement are called "Leased Employees".

While the agency is responsible for tax withholding and reporting, it still the client firm (business) responsibility to ensure that is done properly.

The Job Cost Order system allocates all the costs incurred to  each job or to each batch. For instance, a company that manufactures elevators is

an example of a job because all the costs involved in their manufacture would be assigned to the location(client) where the elevator is being

installed. A customer would place an order for the installation of an elevator and a job order would be completed to fill the specific request.

The purpose would be to compute the cost per job when it is completed. This system uses only one work in process account which is called "Work in Progress (WIP) account or Work in Process Inventory" where direct labor, direct materials used and overhead applied are grouped together.

A Process Cost System focuses on assigning the costs to the process rather to a specific job or customer. Process Cost System is generally used

for the manufacturing of a large volume of similar products.  An example of this system is used for a company that produces cookies.  The

production has to be continuous to ensure that adequate inventory levels are kept on hand.  The production process would start by the blending

of all the ingredients, their transferring to a machine to flaten them and shape them, then the baking and cooling stage, the cookies are

packaged, cartoned, cased and distributed. During this process, the costs are tracked through a series of connected manufacturing processes or

departments, rather than by individual jobs.  In other words, using this system signifies that multiple work in process accounts are used, for instance:
Direct Materials, Direct Labor and Manufacturing Overhead are grouped in the Work in Process - Department A, Work in Process - Department B and Work in Process - Department C accounts.

The determination of total manufacturing costs under this system occurs at the end of each period of time.