ECONOMICS

Detailed explanation-1: -Production cost reports provide a basis for evaluating the productivity of a department. True. Unit material cost is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period.

Detailed explanation-2: -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-3: -Which statement is true concerning a production cost report? It shows equivalent units of production and physical units.

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.

Detailed explanation-5: -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.