COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Used to record the costs chargeable to a specific job
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Shows only cost data for a production department
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Provides a basis for evaluating the productivity of a department
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Combines process cost and job order costing systems costs
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Detailed explanation-1: -A production cost report identifies the total cost (direct materials, labor, and overhead), of producing a product. A production cost report helps managers answer several important questions: How much does it cost to produce each unit of product for each department?
Detailed explanation-2: -The basic information in a production cost report includes the number of products and those in inventory over a specific period and the production cost of every single product.
Detailed explanation-3: -Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. Total product costs can be determined by adding together the total direct materials and labor costs as well as the total manufacturing overhead costs.
Detailed explanation-4: -A production cost report is a report prepared by a processing department for equivalent units of production, production costs, and the assignment of those costs to the completed and in process units.