Processing Canola (corn) oil.
We discuss how we allocate costs in process costing, but it can be difficult to think of it as anything but a mathematical exercise. let’s put it in context….
Here is an example of a process with one output that is put through a series of processes.
Notice the number of steps in the process.
How the by-product of one process (the ‘cake’) is further processed.
How waste products (normal losses) are sold and used further.
I also noticed the large number of chemicals used in the process, so I am not so convinced by the health claims at the beginning!