The First Step in Preparing a Production-Cost Report Is to Calculate

question 15

True/False

The first step in preparing a production-cost report is to calculate unit cost.

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Definitions:

Income Summary

An account to which all revenue and expense accounts are transferred at the end of an accounting period to summarize the results of operations for that period.

Normal balance

The side of an account (debit or credit) where increases in the account are recorded, depending on the account type.

Inventory balance

The total value of all goods and materials held by a company intended for sale or production.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.