Which of the Following Is True of Performance Reports

question 25

Multiple Choice

Which of the following is true of performance reports?

• A) Few supervisors both prepare and request performance reports.
• B) Employees do not prepare performance reports.
• C) A performance report does not compare performance with performance standards.
• D) Useful performance reports clarify rather than conceal problems.

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) associated with producing a single unit of a product.

Traditional Costing Method

A costing methodology that allocates overhead costs based on a single, volume-based cost driver, such as labor hours or machine hours.

Direct Labor-Hours

The total time workers spend on producing a product, directly correlating to the product itself.

Unit Product Cost

An expression of the total production cost (materials, labor, and overhead) divided by the number of units produced.