Identify a simple good produced by your current or former em

Identify a simple good produced by your current or former employer. Do you think it was accounted for using a job order system or a process cost accounting system? What leads you to this conclusion? 100 words or more

Solution

My employer is producing a product called ethanol which is used

by the petrol bunks to mix in the petrol to run the vehicles effectively.

They account the manufacturing cost under Process costing as

there involves a number of stages the rawmaterial is to be processed

and produce an ultimate product called Ethanol. They cant account the

under any other costing system like job order system etc because

for example if they produce the product under such system, there

are constraints like fixed costs will be more, and availablity of

rawmaterials are in short supply etc.

So the constraints are solved if they account under Process cost accounting system.