A Production Cost Report Cannot Be Used for the Pricing

question 28

True/False

A production cost report cannot be used for the pricing of products because it depicts only the ways to control product costs.

---

Definitions:

Dividend Payments

Cash payments made by a company to its shareholders as a distribution of profits.

Variance

A statistical measurement of the dispersion of a set of data points, reflecting how much each number in the set differs from the mean.

Governor Cut-out

Governor cut-out is a mechanism in compressors or engines designed to disengage or reduce fuel supply once a predetermined speed or pressure is reached, to prevent over-speeding.

Governor Cut-in

The point at which a governor device starts to regulate or limit the speed, pressure, or other operational parameters to prevent system overloads.