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Production Reports

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User Generated
Subject
Management
School
Saudi electronic university
Type
Homework
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Running head: PRODUCTION REPORTS 1
Production Reports
Name
Institution

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PRODUCTION REPORTS 2
Production Reports
A manufacturing company's success reflects the need for accounting practices that
involve the preparation and documentation of production cost reports. Production reports are
documents prepared to accommodate the company’s manufacturing information and detail the
costs related to the production process. For instance, production cost reports incorporate every
department's information concerning the input units, the opening inventory, closing balance
inventory, completed units, equivalent units, transferred units, and the cost of each unit
produced. The production cost will also be useful in documenting process costing. It will
influence the evaluation of the production costs of the units produced and the units sold (Grytz &
Krohn-Grimberghe, 2018). The primary purpose of production cost reports is to enhance the
understanding of the costs incurred during the production of product units in each department.
Production cost reporting will also involve the approaches of evaluating the profitable
manufacturing processes and helping the management in making viable decisions of the
company.
Moreover, production reports are crucial as they facilitate focusing on the critical
operations that will benefit the company. Production cost reports help in identifying the
difference in the manufacturing processes. For instance, the manufacturing of a product unit will
pass through several processes that will be examined through cost accounting. The reports will
help identify the cost of production at each department or process, which will help focus on the
procedures aimed at reducing the production costs (Tabitha & Oluyinka, 2016). Production
reporting will further demonstrate the importance of documenting the production costs as they
help in cost control, cost classification, product pricing, cost minimization, budgeting, and
making viable production decisions. Production reports demonstrate the need for classifying the

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Running head: PRODUCTION REPORTS 1 Production Reports Name Institution PRODUCTION REPORTS 2 Production Reports A manufacturing company's success reflects the need for accounting practices that involve the preparation and documentation of production cost reports. Production reports are documents prepared to accommodate the company’s manufacturing information and detail the costs related to the production process. For instance, production cost reports incorporate every department's information concerning the input units, the opening inventory, closing balance inventory, completed units, equivalent units, transferred units, and the cost of each unit produced. The production cost will also be useful in documenting process costing. It will influence the evaluation of the production costs of the units produced and the units sold (Grytz & Krohn-Grimberghe, 2018). The primary purpose of production cost reports is to enhance the understanding of the costs incurred during the production of product units in each department. Production cost reporting will also involve the approaches of evaluating the profitable manufacturing processes and helping the management in making viable decis ...
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