Question

Thinking of the Middle East, identify at least one item that is most likely produced using job order costing ( i have choosen refined petroleum with pre defined attributes), and one item that is most likely produced using process costing (crude oil). Explain why you think each one would be produced under the system identified.

Answer 1

CONSTRUCTION WORK is done by using the job order costing in the countries of middle east as the labour and engineers are hired to build sky scraapers and other buildings more in the middle east countries in comparison of other countries as the Sheikhs of middle east countries are to hire those labours and enginners to do the work from all over the world. and these works are alloted to them on the basis of job order costing.

PRODUCTION OF CLOTHES according to me i though clothes are likely produced in the middle east countries by using process costing as there is a process wise working in this induatry first the manufacturer purchases the raw material then made cloth from it after that cutting of such cloth in different sizes and shapes then stiching and packing and at last send to the outlet.

their is a process which the manufacturer has to follow there is no scope of skiping anything between this process

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