ECONOMICS

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: -Advertisement is a selling cost and not a production cost as it is not directly related to the production of the good. Its is usually classified as a sunk cost or an indirect cost. All other costs are directly related to the production of a good.

Detailed explanation-3: -Cost of production is the total cost incurred by a business to either produce a product or offer their services. Production costs typically include supplies and raw materials that are consumed during production, along with labor expenses.

Detailed explanation-4: -The following items of expenses, losses or incomes are excluded from the cost sheet: Related to capital assets. appropriation of profits. amortization of fictitious or intangible assets.