What is a production cost report used for?
A)It is an external report provided to shareholders.
B)It shows costs charged to a department and costs accounted for.
C)It shows equivalent units of production but not physical units.
D)It shows the basis on which overhead is allocated.

Question

Quizplus · Accepted Answer

A production cost report is used to show the costs charged to a department and the costs accounted for during a specific period. It helps to track the production process and identify any inefficiencies or areas for improvement. Option A is not correct as a production cost report is an internal document and is not provided to shareholders. Option C is also not correct as a production cost report includes both equivalent units and physical units. Option D is not entirely accurate as a production cost report shows the actual overhead incurred and not just the basis on which it is allocated.

What Is a Production Cost Report Used For