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ID number:542904
Published: 04.01.2017.
Language: English
Level: College/University
Literature: 4 units
References: Not used
Time period viewed: 2006.g. - 2011.g.

During the research of ExxonMobil Chemical alcohols production in USA to export to Brazil, it is clear that they qualify to apply process costing to their production due to the nature of their production process and outcome. Since their products have final identical units and each step’s output becoming the input for the next, accumulating cost in the process, they can easily calculate the average final cost per unit dividing the whole process’ cost in a period by the final output in that period, methodology explained by Drury. It is also possible to include the logistics costs in the process, since they also accumulate during the process and one stage is needed in order to get the product to its final destination, similar to production process’ input and output model.

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