What Information Is Found in the Cost of Production Report

question 152

Multiple Choice

What information is found in the cost of production report?

• A) the units planned to be produced by a department
• B) the fixed costs and the physical units processed by the department
• C) the manufacturing costs incurred by the department and the variable costs
• D) the physical units processed and the manufacturing costs incurred by the department

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Definitions:

Fixed Product Cost

Costs associated with production that do not change with the level of output, such as salaries of permanent staff and depreciation of machinery.

Straight Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Income

The total profit or earnings after all expenses and taxes have been deducted from revenue.