Which of the following is true of a production report prepared under a process-costing system?
A)It provides information about the physical units processed in a department.
B)It has a unit information section, a cost information section, and a revenue information section.
C)It summarizes the manufacturing activity of a company only at the end of a reporting period.
D)It is prepared at the final stage of a manufacturing activity.

Question

Quizplus · Accepted Answer

A production report prepared under a process-costing system provides information about the physical units processed in a department. This is because in a process-costing system, the costs are accumulated by department or process rather than by individual product. Therefore, the production report summarizes the activities of a department by physical units processed, rather than by individual products.

Which of the Following Is True of a Production Report