ECONOMICS

Detailed explanation-1: -In such cases, process costing is used. In case of refinery, there are various processes involved, hence process costing is involved.

Detailed explanation-2: -Costs accumulate on manufactured goods while they are in production. The three costs of production are direct materials, direct labor, and factory overhead. For unique products, each job accumulates different amounts of each of these three costs.

Detailed explanation-3: -Process costing is an important product costing method for manufacturing companies that mass produce a large volume of similar products or units of output. Process costing is widely used in industries such as oil refining, food production, chemical processing, textiles, glass, cement and paint manufacture.

Detailed explanation-4: -Companies in the white-collar sector of business, including law firms, accounting businesses, and private investment companies, can utilize job order costing to manage individual client accounts. For example, accounting firms can consider each individual client a job.