Accounting - V

Process costing companies are one of the companies well known for their ability to handle homogenous goods. Again, the companies take part in continuous processing for the purposes of producing quality goods for the customers. On the other hand, the process costing companies ensure that the costs incurred are accumulated in different departments. The accumulation of the costs in the departments makes it easy for the companies to control the activities carried out for the purposes of facilitating the success of the organization. However, Chevron Corporation is one of the companies which make an effective use of process costing as a way of ensuring that the set goals are achieved within the stipulated time. The company is among the well know companies handling the petroleum product in the United States. (Kelly, 2018) For the success of the company to be achieved, the management has come up with different strategies in which the labor, the materials, and the overhead costs are accumulated for the entire production process. The accumulations of the costs in the entire production process are allocated to the individual production units hence enabling the management to control the production processes accordingly. For the production processes to be carried out in the best way possible, the leaders in each department are required to record the rates of production in a production worksheet hence evaluating the manner in which the production processes are carried out. The company has been ranked among the best producers of petroleum products in the United States. As a result, the company has been recording high amounts of profits hence facilitating the motivation of the employees. Moreover, the success of the company is brought about by the ability of the management to come up with strategies of ensuring that different incentives are given to the employees. Again, the high rates of production by Chevron Corporation is facilitated by the ability of the management to reward the best performing team as a way of forcing the other least performing teams to increase their rates of production. (Popat, 2018) The company’s capital spending on the matters of developments and explorations is on 1.7 million net acres of shale and other resources. In the year 2017, Chevron Corporation took part in 57 nonoperated well hence ensuring that the rates of production are increased. This has played significant roles in ensuring that the needs of the customers in the market are addressed in an effective manner, therefore, increasing the number of sales made within a given period of time. In the 57 nonoperated wells, 5 of the nonoperated rigs are active all years, therefore, making it easy for the company to achieve the set targets as far as the production is concerned. In 2017, Chevron Corporation was able to record revenue of more than 141,722 million USD. Again, the company was able to make a net income of $9,195 million and price per share of $106.33 million in the same year. In the previous year, the company recorded $114,472 million revenue. In 2011, Chevron Corporation is said to have made earnings of $26.9 billion and annual revenue of $ 257.3 billion. The success of the company is brought about by the manner in which the employees are engaged for the purposes of ensuring that they share production ideas. This has enabled the company to be ranked among the top companies in the Fortune 500 rankings of the United States Corporations. (Webster, 2018) References Kelly, M., & Shoemaker, N. (2018). Closing Pandora's Box: Reducing Student Confusion with a Process Costing Simulation. Journal of Accounting and Finance, 18(7), 56-61. Popat, K., Gracia, K. A., Guzman, A. B., & Feeley, T. W. (2018). Using Time-Driven Activity-Based Costing to Model the Costs of Various Process-Improvement Strategies in Acute Pain Management. Journal of Healthcare Management, 63(4), e76-e85.